It’s an underpublicised certainty that a Osterley residential lease is a deteriorating asset. As the lease term reduces so does the value of the property. The extent of this is not fully appreciated in the early years due to the reduction being disguised by increases in the Osterley property prices.Once your lease nears 85ish years, you need to start considering a lease extension. If lease term dips under 80 years, you will end up paying half of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. The marriage fee is the amount of extra value that a lease extension will add the property The majority of flat owners in Osterley will be able to extend under the legislation; however a conveyancer will be able to confirm whether you are eligibility. In some cases you may not be entitled. There are also strict timetables and procedures to be adhered to once the process is instigated and you will need to be guided by your lawyer throughout the process.
Leasehold residencies in Osterley with in excess of 100 years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Osterley can be a difficult process. We recommend you obtain professional help from a conveyancing solicitor and valuer with experience in this area.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge procuring Osterley lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In 2014 Max, came precariously close to the 80-year mark with the lease on his one bedroom apartment in Osterley. Having purchased his property two decades ago, the length of the lease was of minimal relevance. by good luck, he recognised he needed to take steps soon on a lease extension. Max arranged for a lease extension at the eleventh hour last July. Max and the freeholder via the management company ultimately agreed on an amount of £6,000 . If the lease had descended below 80 years, the amount would have gone up by a minimum £1,000.
Last Spring we were e-mailed by Mr H Rogers , who bought a basement apartment in Osterley in August 2006. The dilemma was if we could approximate the price could be to prolong the lease by an additional years. Identical properties in Osterley with 100 year plus lease were in the region of £264,000. The mid-range amount of ground rent was £60 invoiced per annum. The lease expiry date was on 6 November 2079. Given that there were 53 years outstanding we estimated the premium to the landlord for the lease extension to be between £37,100 and £42,800 not including legals.
An example of a Lease Extension decision for a Osterley flat 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 was in relation to 1 flat. The unexpired term as at the valuation date was 60.45 years.