When it comes to domestic leasehold property in Gunnersbury, you are actually purchasing a right to reside in a property for a set period of time. Modern flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned as this seems like a long period of time, you should think about 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 becomes disproportionately more expensive particularly when there are fewer than 80 years left. Anyone in Gunnersbury with a lease drawing near to 81 years left should seriously consider extending it without delay. When the lease term has below 80 years remaining, under the current legislation the freeholder can calculate and demand a larger amount, assessed on a technical computation, known as “marriage value” which is due.
Leasehold properties in Gunnersbury with more than one hundred years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance charges warrant 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 are not acceptable. 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; |
| 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. |
| 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. |
Irrespective of whether you are a tenant or a landlord in Gunnersbury,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Gunnersbury valuers.
Subsequent to lengthy correspondence with the freeholder of her one bedroom apartment in Gunnersbury, Tia commenced the lease extension process just as the lease was nearing the all-important eighty-year threshold. The transaction was finalised in August 2011. The freeholder’s costs were kept to an absolute minimum.
Last Autumn we were approach by Dr Matthew Wilson , who moved into a studio apartment in Gunnersbury in October 1996. We are asked if we could shed any light on how much (approximately) compensation to the landlord could be to extend the lease by an additional years. Identical residencies in Gunnersbury with a long lease were valued about £255,000. The average amount of ground rent was £50 billed monthly. The lease expired in 2096. Given that there were 70 years unexpired we estimated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 not including professional charges.
An example of a Freehold Enfranchisement decision for a Gunnersbury property 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 term was 64.64 years.