West Smithfield leases on residential properties are gradually losing value. Where your lease has about ninety years left, you should start considering the need for a lease extension. An important point to note is that it is financially advisable for a lease extension to be in place before the term of the existing lease falls under eighty years - otherwise a higher premium will be due. Flat owners in West Smithfield will usually be legally entitled to a lease extension; however a solicitor should be able check your eligibility. In some circumstances you may not be entitled. There are also strict deadlines and formalities to comply with once the process has started so it’s wise to be guided by a lawyer during the process.
Leasehold properties in West Smithfield with over one hundred years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and service charges justify it.
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| 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 West Smithfield can be a difficult process. We recommend you get guidance from a lawyer and surveyor 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 dealing with West Smithfield lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Joshua was the the leasehold proprietor of a studio apartment in West Smithfield on the market with a lease of just over fifty eight years unexpired. Joshua on an informal basis approached his freeholder a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to give an extension on non-statutory terms taking the lease to 125 years subject to a new rent to start with set at £200 per annum and increase every twenty five years thereafter. No ground rent would be due on a lease extension were Joshua to exercise his statutory right. Joshua obtained expert advice and was able to make a more informed decision and deal with the matter and sell the flat.
In 2009 we were approached by Dr Jack Johnson who, having took over the lease of a ground floor flat in West Smithfield in October 2000. We are asked if we could estimate the compensation to the landlord would likely be for a 90 year extension to my lease. Comparable residencies in West Smithfield with 100 year plus lease were in the region of £280,000. The mid-range ground rent payable was £45 collected every twelve months. The lease expired in 2095. Taking into account 70 years outstanding we estimated the compensation to the freeholder for the lease extension to be within £12,400 and £14,200 not including costs.
An example of a Lease Extension case for a West Smithfield flat is Flat 89 Trinity Court Grays Inn Road in February 2013. the Tribunal found that the premium to be paid by the tenant on the grant of a new lease, in accordance with section 56 and Schedule 13 to the Leasehold Reform, Housing and Urban Development Act 1993 should be £36,229. This case related to 1 flat. The unexpired term was 66.8 years.