Owning a flat usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. The lease will usually be granted for a fixed period of time , ordinarily 99 or 125 years, although we have seen longer and shorter terms in Brentford. Inevitably, the period of lease remaining shortens as time goes by. This may pass by relatively unnoticed when the property has to be sold or refinanced. The shorter the lease the less it is worth and the more it will cost to extend the lease. Qualifying long lease owners in Brentford have the right to extend the lease for a further ninety years in accordance with Leasehold Reform legislation. Do give careful attention before delaying your Brentford lease extension. Holding off the cost now only increases the price you will eventually incur for a lease extension
It is conventional wisdom that a residential leasehold with over 100 years remaining is worth roughly the equivalent as a freehold. Where an further 90 years added to any lease with more than 35 years remaining, the premises will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| Yorkshire 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. |
Irrespective of whether you are a tenant or a freeholder in Brentford,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Brentford valuers.
Last October Blake, came perilously close to the 80-year mark with the lease on his garden flat in Brentford. In buying his home two decades ago, the length of the lease was of minimal bearing. by good luck, he noticed he would imminently be paying an inflated amount for Extending the lease. Blake arranged for a lease extension just in the nick of time last September. Blake and the freeholder via the management company eventually settled on the final figure of £5,500 . If he had missed the deadline, the premium would have become more costly by a minimum £875.
In 2013 we were contacted by Mr M André who, having moved into a one bedroom flat in Brentford in February 2011. The question was if we could shed any light on how much (roughly) price would be for a ninety year extension to my lease. Similar properties in Brentford with an extended lease were valued around £198,800. The mid-range ground rent payable was £55 billed per annum. The lease ran out on 25 March 2081. Having 55 years as a residual term we calculated the premium to the landlord for the lease extension to be between £33,300 and £38,400 plus legals.
An example of a Freehold Enfranchisement case for a Brentford flat is 105 & 105A Seaford Road in July 2013. The tribunal determined that the price payable for the freehold interest in the Property was £43,985 . This sum was to be paid into Brentford County Court to enable the matter to proceed This case related to 2 flats.