When it comes to domestic leasehold property in Chiswick, you are actually purchasing a right to reside in a property for a prescribed time frame. These days flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you may consider a lease extension sooner rather than later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly notably when there are less than 80 years left. Leasehold owners in Chiswick with a lease drawing near to 81 years unexpired should seriously consider extending it as soon as possible. Once a lease has below 80 years remaining, under the current statute the freeholder is entitled to calculate and demand a larger premium, assessed on a technical calculation, strangely termed as “marriage value” which is due.
Leasehold premises in Chiswick with over one hundred years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
The conveyancers that we work with handle 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 conveyancer we work with provide it.
Trailing unsuccessful discussions with the landlord of her ground floor flat in Chiswick, Jordan commenced the lease extension process as the eighty year mark was quickly advancing. The transaction completed in October 2015. The landlord’s charges were negotiated to less than 500 GBP.
In 2013 we were called by Mr and Mrs. A Rodríguez who, having completed a studio apartment in Chiswick in June 2001. The question was if we could shed any light on how much (roughly) premium could be to extend the lease by a further 90 years. Comparable properties in Chiswick with 100 year plus lease were valued around £260,000. The average amount of ground rent was £50 invoiced per annum. The lease came to a finish in 2098. Given that there were 73 years left we calculated the compensation to the freeholder to extend the lease to be between £9,500 and £11,000 not including legals.
An example of a Lease Extension matter before the tribunal for a Chiswick property 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 residue of the current lease was 68.34 years.