Brentford leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease becomes more expensive. Legislation has been in place for sometime now allowing qualifying Brentford residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Brentford you should see if your lease has between 70 and 90 years left. In particular once the remaining lease term slips under 80 years, the compensation to the landlord for any lease extension sharply increases as part of the premium you will incur is what is known as a marriage value
Leasehold properties in Brentford with in excess of 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 buying the reversionary interest unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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. |
| Yorkshire 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. |
The lawyers that we work with handle Brentford 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 conveyancing solicitor we work with provide it.
Two years ago Daniel, came perilously close to the 80-year threshold with the lease on his leasehold flat in Brentford. Having bought his property two decades ago, the unexpired term was of no interest. As luck would have it, he became aware that he would soon be paying an escalated premium for Extending the lease. Daniel arranged for a lease extension at the eleventh hour last April. Daniel and the landlord in the end agreed on sum of £5,500 . If the lease had slipped lower than 80 years, the sum would have increased by at least £975.
Mrs Alice Bernard purchased a garden flat in Brentford in March 2004. The dilemma was if we could shed any light on how much (approximately) premium would likely be for a 90 year lease extension. Comparable flats in Brentford with 100 year plus lease were in the region of £280,000. The average ground rent payable was £45 invoiced monthly. The lease terminated on 2 June 2096. Given that there were 70 years remaining we calculated the premium to the freeholder to extend the lease to be between £12,400 and £14,200 not including legals.
An example of a Freehold Enfranchisement decision for a Brentford residence 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 affected 2 flats.