It’s a harsh truth that a Brentford residential lease is a wasting asset. As the lease term diminishes so does the value of the property. The extent of this is not fully appreciated in the first few years due to the loss of value being disguised by increases in the Brentford property market.Where your lease has approximately 90 years left, you need to start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease falls lower than 80 years - otherwise a higher amount will be due. Most leasehold owners in Brentford will be able to extend under the legislation; however a lawyer will be able to clarify if you are eligibility. In some cases you may not be entitled. There are also strict timetables and procedures to follow once the process is initiated and you will need to be guided by your conveyancer from beginning to end of the process.
Leasehold residencies in Brentford with in excess of 100 years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little upside in buying the freehold unless savings on ground rent and service charges merit 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. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Brentford can be a difficult process. We recommend you get professional help from a conveyancing solicitor 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 a wealth of experience procuring Brentford lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In 2014 Logan, started to get close to the 80-year threshold with the lease on his purpose- built flat in Brentford. In buying his property two decades ago, the unexpired term was of minimal significance. Luckily, it dawned on him that he would soon be paying an inflated amount for Extending the lease. Logan extended the lease at the eleventh hour last January. Logan and the freeholder eventually settled on an amount of £5,000 . If the lease had slipped below 80 years, the price would have become more exhorbitant by at least £875.
Last January we were e-mailed by Dr Amber Brooks , who bought a studio flat in Brentford in July 2006. The question was if we could estimate the price would be to extend the lease by a further 90 years. Similar properties in Brentford with 100 year plus lease were valued about £265,200. The mid-range ground rent payable was £65 billed quarterly. The lease elapsed on 9 October 2092. Given that there were 66 years unexpired we calculated the premium to the landlord to extend the lease to be within £15,200 and £17,600 plus expenses.
An example of a Freehold Enfranchisement decision for a Brentford property is 105 & 105A Seaford Road in July 2013. The tribunal determined that the price payable for the freehold interest in the Property was £43,985 . This sum was to be paid into Brentford County Court to enable the matter to proceed This case related to 2 flats.