There is no doubt about it a leasehold property in Gunnersbury is a wasting asset as a result of the shortening lease. If the lease has, in excess of one hundred years remaining then this decrease may be negligible however there will become a point in time when a lease has under than eighty years remaining as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the main rational as to why you should extend the lease without delay. The majority of flat owners in Gunnersbury will qualify for this right; nevertheless a conveyancer can advise whether you qualify for a lease extension. In certain situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
Leasehold premises in Gunnersbury with over 100 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 premises. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Irrespective of whether you are a tenant or a landlord in Gunnersbury,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Gunnersbury valuers.
Half a year ago Ryan, came dangerously close to the 80-year mark with the lease on his basement flat in Gunnersbury. Having purchased his home 18 years previously, the lease term was of little concern. As luck would have it, it dawned on him that he needed to take action soon on a lease extension. Ryan arranged for a lease extension just under the wire in June. Ryan and the freeholder in the end agreed on an amount of £5,500 . If the lease had descended to less than 80 years, the sum would have escalated by a minimum £850.
Last Christmas we were e-mailed by Mr K Rivera , who purchased a one bedroom flat in Gunnersbury in March 1998. The question was if we could approximate the premium could be for a 90 year lease extension. Identical homes in Gunnersbury with 100 year plus lease were worth £225,400. The average amount of ground rent was £45 invoiced every twelve months. The lease came to a finish in 2089. Considering the 64 years unexpired we calculated the compensation to the landlord to extend the lease to be within £16,200 and £18,600 exclusive of professional charges.
An example of a Freehold Enfranchisement case 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 was in relation to 2 flats. The unexpired lease term was 64.64 years.