The basic rule is, all other things holding equal, the shorter the lease the more costly the premium. Qualifying leaseholders in Gunnersbury have the right to extend the lease for an additional ninety years in accordance with the 1993 Leasehold Reform Act. Please give careful consideration before delaying your Gunnersbury lease extension. Postponing the costs now simply escalates the amount you will eventually have to pay to extend the lease.
It is generally considered that a property with in excess of 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the residence will be equivalent in value to a freehold for decades to come.
| 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Gunnersbury can be a difficult process. We recommend you secure guidance from a conveyancer and valuer with experience in lease extensions.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience procuring Gunnersbury lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Nathaniel owned a high value flat in Gunnersbury being marketed with a lease of fraction over 59 years left. Nathaniel informally spoke with his freeholder being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to a rise in the rent to £100 annually. Ordinarily, ground rent would not be payable on a lease extension were Nathaniel to exercise his statutory right. Nathaniel procured expert legal guidance and secured satisfactory resolution without resorting to tribunal and sell the property.
Dr Sophie Leroy completed a one bedroom flat in Gunnersbury in January 2010. The question was if we could shed any light on how much (approximately) price would be for a 90 year lease extension. Identical properties in Gunnersbury with an extended lease were valued about £166,400. The mid-range ground rent payable was £60 collected monthly. The lease elapsed in 2079. Taking into account 54 years as a residual term we approximated the compensation to the landlord to extend the lease to be within £32,300 and £37,400 exclusive of costs.
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 remaining number of years on the lease was 64.64 years.