There is no doubt about it a leasehold property in Paddington is a wasting asset as a result of the shortening lease. Where the residual term has, beyond 125 years remaining then this decrease may be of little impact nevertheless there will become a point in time when a lease has fewer than eighty years unexpired as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the primary logic behind why you should consider extending sooner rather than later. The majority of flat owners in Paddington will qualify for this right; that being said a conveyancing solicitor will be able to advise whether you are eligible to extend your lease. In certain situations you may not qualify, the most common reason being that you have owned the property for under two years.
It is generally accepted that a property with over one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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 Paddington can be a difficult process. We recommend you obtain guidance from a lawyer and valuer well versed in the legislation and lease extension process.
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 dealing with Paddington lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
After protracted correspondence with the landlord of her one bedroom flat in Paddington, Hollie started the lease extension process as the 80 year deadline was rapidly nearing. The legal work was finalised in May 2007. The freeholder’s fees were restricted to less than 550 pounds.
Last Spring we were called by Dr C Ali , who purchased a newly refurbished apartment in Paddington in January 2006. We are asked if we could approximate the premium would likely be to extend the lease by ninety years. Similar flats in Paddington with 100 year plus lease were valued around £255,000. The mid-range amount of ground rent was £50 invoiced quarterly. The lease ended on 27 March 2095. Having 70 years as a residual term we estimated the premium to the freeholder to extend the lease to be between £10,500 and £12,000 exclusive of fees.
An example of a Lease Extension case for a Paddington residence is Flats 37 & 39 88/90 Portland Place in December 2010. The Tribunal determined that the premium payable for the lease extensions in respect of these two flats is as follows:- For Flat 37, the sum of £385,230.00 For Flat 39, the sum of £436,780.00 This case affected 2 flats. The unexpired term as at the valuation date was 24.02 years.