Osterley leases on residential deteriorating in value. Where your lease has about ninety years unexpired, you should start thinking about a lease extension. If lease term is less than eighty years, you will then have to pay 50% of the property's 'marriage value' in addition to the usual cost of the lease extension to your landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Flat owners in Osterley will usually qualify for a lease extension; however a solicitor should be able check your eligibility. In some situations you may not be entitled. There are also strict deadlines and procedures to follow once the process has started so it’s wise to be guided by a conveyancing solicitor during the process.
It is conventional wisdom that a property with over one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional ninety years added to any lease with more than 35 years unexpired, the property will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Chelsea Building Society | 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. |
| Godiva Mortgages | 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Yorkshire Building Society | 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. |
The lawyers that we work with procure Osterley lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
In the wake of 6 months of protracted discussions with the landlord of her purpose-built apartment in Osterley, Victoria commenced the lease extension process just as her lease was coming close to the all-important 80-year mark. The transaction was finalised in June 2007. The freeholder’s fees were kept to an absolute minimum.
In 2012 we were contacted by Mr and Mrs. Y Brown who, having was assigned a lease of a first floor apartment in Osterley in August 2004. The question was if we could estimate the premium would be for a ninety year lease extension. Identical residencies in Osterley with a long lease were worth £290,000. The mid-range ground rent payable was £60 billed every twelve months. The lease lapsed in 2105. Considering the 80 years remaining we estimated the compensation to the freeholder to extend the lease to be between £13,300 and £15,400 not including expenses.
An example of a Lease Extension matter before the tribunal 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 related to 1 flat. The number of years remaining on the existing lease(s) was 60.45 years.