Osterley leases on residential deteriorating in value. Where your lease has in the region of 90 years remaining, you should start thinking about a lease extension. 80 years is a significant number: when the remaining term of a lease drops below this level then you start paying an additional element called marriage value. Flat owners in Osterley will mostly qualify for a lease extension; however a solicitor will confirm if you qualify. In some situations you may not be entitled. There are also strict timetables and formalities to follow once the process is triggered so it’s prudent to be guided by a lawyer during the process.
Leasehold premises in Osterley with more than one hundred years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
| Coventry Building Society | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Retaining our service gives you better control over the value of your Osterley leasehold, as your property will be more valuable and saleable in relation to the lease length should you decide to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Half a year ago Eliot, came perilously close to the eighty-year mark with the lease on his one bedroom apartment in Osterley. In buying his property 18 years ago, the length of the lease was of little interest. As luck would have it, he became aware that he would imminently be paying way over the odds for Extending the lease. Eliot arranged for a lease extension just ahead of time in April. Eliot and the landlord who owned the flat above subsequently settled on an amount of £5,000 . If he failed to meet the deadline, the figure would have increased by a minimum £1,000.
Last year we were called by Dr Samuel Bernard , who was assigned a lease of a studio apartment in Osterley in March 2010. We are asked if we could estimate the premium would likely be for a ninety year extension to my lease. Similar properties in Osterley with 100 year plus lease were in the region of £200,800. The average ground rent payable was £65 collected monthly. The lease expired on 2 July 2085. Given that there were 60 years left we calculated the premium to the freeholder to extend the lease to be between £20,900 and £24,200 exclusive of costs.
An example of a Lease Extension matter before the tribunal for a Osterley residence is Ground Floor Flat 91 Bath Road in May 2009. in a case where the freeholder could not be traced, the Brentford County Court ordered that the Lease be surrendered in return for the grant of a new lease of the Premises at a premium determined by the Leasehold Valuation Tribunal. The tribunal concluded that the price payable by the Applicant for the new lease of the premises be £15,900 This case affected 1 flat. The number of years remaining on the existing lease(s) was 60.45 years.