The basic rule is, all other things holding equal, the shorter the lease the more expensive the premium. Qualifying leaseholders in Gunnersbury have the legal entitlement to extend the lease for a further ninety years in accordance with the 1993 Leasehold Reform Act. Do think carefully before delaying your Gunnersbury lease extension. Shelving that expense now simply increases the price you will ultimately have to pay for a lease extension.
Leasehold premises in Gunnersbury with in excess of one hundred years unexpired 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 to be gained by buying the freehold unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Engaging our service will provide you enhanced control over the value of your Gunnersbury leasehold, as your property will be more valuable and marketable in respect of lease length should you decide to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Trailing lengthy negotiations with the landlord of her two bedroom apartment in Gunnersbury, Rhiannon started the lease extension process as the eighty year mark was swiftly nearing. The lease extension completed in August 2014. The landlord’s charges were kept to an absolute minimum.
Mr A Morel moved into a one bedroom apartment in Gunnersbury in October 1997. The dilemma was if we could estimate the premium would be to extend the lease by 90 years. Identical residencies in Gunnersbury with 100 year plus lease were worth £254,200. The average ground rent payable was £60 collected every twelve months. The lease concluded on 17 May 2077. Given that there were 51 years outstanding we estimated the premium to the freeholder for the lease extension to be within £43,700 and £50,600 exclusive of fees.
An example of a Freehold Enfranchisement decision for a Gunnersbury residence is 169 Southfield Road in September 2013. the tribunal decided that the premium to be paid in respect of the collective enfranchisement should be £51,203 This case affected 2 flats. The unexpired lease term was 64.64 years.