On the balance of probabilities if you own a flat in Osterley you actually own a long leasehold interest over your property
Leasehold residencies in Osterley with over 100 years left on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and maintenance 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
The conveyancers that we work with handle 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 2014 George, came precariously close to the eighty-year threshold with the lease on his studio apartment in Osterley. Having bought his property two decades ago, the unexpired term was of little importance. As luck would have it, he realised he needed to take action soon on Extending the lease. George arranged for a lease extension just in the nick of time in August. George and the landlord who owned the flat above subsequently agreed on the final figure of £5,000 . If the lease had slipped to less than 80 years, the premium would have escalated by a minimum £1,075.
In 2014 we were contacted by Mr and Mrs. W Ramírez who, having took over the lease of a one bedroom apartment in Osterley in May 2004. We are asked if we could approximate the price would likely be to extend the lease by a further 90 years. Comparative properties in Osterley with 100 year plus lease were in the region of £166,400. The average ground rent payable was £60 invoiced quarterly. The lease ran out in 2079. Taking into account 54 years remaining we calculated the premium to the landlord to extend the lease to be within £32,300 and £37,400 exclusive of professional charges.
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 was 60.45 years.