Owning a flat usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. This lease will usually be granted for a set period of time , ordinarily 99 or 125 years, although we have witnessed longer and shorter terms in Chiswick. Clearly, the term of lease left shortens as time goes by. This may pass by relatively unnoticed when the residence needs to be sold or re-mortgaged. The shorter the lease the lower the value of the property and the more it will cost to extend the lease. Eligible leaseholders in Chiswick have the right to extend the lease for a further ninety years under Leasehold Reform legislation. Please give due attention before delaying your Chiswick lease extension. Putting off the cost now only increases the price you will eventually have to pay to extend your lease
It is generally considered that a property with over 100 years remaining is worth approximately the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Halifax | 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The lawyers that we work with procure Chiswick 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 lawyer we work with provide it.
Two years ago Theo, came perilously near to the 80-year mark with the lease on his studio flat in Chiswick. Having bought his flat two decades ago, the length of the lease was of little bearing. Thankfully, it dawned on him that he would soon be paying way over the odds for Extending the lease. Theo extended the lease just in the nick of time in May. Theo and the freeholder via the managing agents subsequently agreed on sum of £5,500 . If he had missed the deadline, the price would have escalated by at least £925.
Mr S Michel owned a ground floor apartment in Chiswick in October 1996. The question was if we could shed any light on how much (roughly) compensation to the landlord would be for a ninety year lease extension. Identical premises in Chiswick with 100 year plus lease were in the region of £200,800. The average amount of ground rent was £65 collected every twelve months. The lease ran out in 2085. Having 60 years unexpired we approximated the premium to the freeholder to extend the lease to be between £20,900 and £24,200 plus professional charges.
An example of a Lease Extension matter before the tribunal for a Chiswick residence is Flat 1 30 Ennismore Avenue in September 2010. the Tribunal adopted and arrived at a premium for the lease extension of £29, 900 This case affected 1 flat. The unexpired term was 68.34 years.