Osterley leases on domestic deteriorating in value. if your lease has in the region of 90 years left, you should start considering the need for a lease extension. If lease term is under eighty years, you will then be required to pay 50% of the property's 'marriage value' in addition to the standard cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Leasehold owners in Osterley will mostly be legally entitled to a lease extension; however a solicitor will confirm your eligibility. In certain circumstances you may not be entitled. There are also strict timetables and steps to follow once the process has commenced so it’s best to be guided by a lawyer during the process.
It is conventional wisdom that a residential leasehold with more than 100 years remaining is worth roughly the equivalent as a freehold. Where an additional 90 years added to any lease with more than 35 years remaining, the premises will be worth the same as a freehold for decades to come.
| 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. |
| 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. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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 lease extensions.
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.
During the course of the last few months Daniel, started to get near to the 80-year mark with the lease on his garden apartment in Osterley. In buying his flat two decades ago, the lease term was of little interest. As luck would have it, he recognised he needed to take action soon on Extending the lease. Daniel arranged for a lease extension just under the wire last August. Daniel and the landlord who owned the flat above subsequently settled on an amount of £6,000 . If he not met the deadline, the amount would have become more costly by a minimum £1,050.
Last Autumn we were contacted by Dr Sarah Carter , who completed a one bedroom flat in Osterley in April 2004. The dilemma was if we could approximate the premium would likely be to extend the lease by ninety years. Comparable premises in Osterley with 100 year plus lease were worth £242,600. The average amount of ground rent was £45 collected every twelve months. The lease ran out on 16 April 2093. Having 67 years remaining we approximated the compensation to the freeholder to extend the lease to be within £11,400 and £13,200 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 related to 1 flat. The unexpired term as at the valuation date was 60.45 years.