Osterley leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease becomes more expensive. The majority of owners of residential leasehold property in Osterley enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Osterley you really ought to see if your lease has between seventy and 90 years left. There are compelling reasons why a Osterley flat owner with a lease having around eighty years remaining should take action to make sure that a lease extension is actioned without delay
It is generally accepted that a residential leasehold with over 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an further ninety years added to any lease with more than 45 years unexpired, the premises will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| 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. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Irrespective of whether you are a tenant or a landlord in Osterley,the lease extension experts 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 Osterley valuers.
In 2014 Teddy, started to get close to the 80-year threshold with the lease on his ground floor apartment in Osterley. Having bought his flat two decades ago, the length of the lease was of minimal bearing. As luck would have it, it dawned on him that he would imminently be paying way over the odds for a lease extension. Teddy extended the lease just under the wire in August. Teddy and the freeholder via the managing agents ultimately agreed on the final figure of £5,500 . If the lease had gone lower than 80 years, the amount would have escalated by at least £1,000.
In 2010 we were contacted by Mr and Mrs. M Michel who, having was assigned a lease of a basement apartment in Osterley in July 1995. We are asked if we could estimate the compensation to the landlord could be to prolong the lease by an additional years. Comparable homes in Osterley with an extended lease were in the region of £173,800. The mid-range ground rent payable was £60 collected quarterly. The lease came to a finish in 2079. Considering the 55 years remaining we calculated the compensation to the freeholder for the lease extension to be within £31,400 and £36,200 plus legals.
An example of a Lease Extension decision for a Osterley premises is Ground Floor Flat 91 Bath Road in May 2009. in a case where the freeholder could not be traced, the Brentford County Court ordered that the Lease be surrendered in return for the grant of a new lease of the Premises at a premium determined by the Leasehold Valuation Tribunal. The tribunal concluded that the price payable by the Applicant for the new lease of the premises be £15,900 This case related to 1 flat. The unexpired term as at the valuation date was 60.45 years.