Owning a apartment usually means owning a lease of the property, which has a set term of years. The lease will ordinarily be granted for a prescribed period of time , ordinarily 99 or 125 years, although we have come across longer and shorter terms in Chiswick. Clearly, the period of lease left shortens as time goes by. This is often overlooked and only raises itself as an issue when the property needs to be sold or refinanced. The fewer the years remaining the lower the value of the property and the more it will cost to extend the lease. Qualifying leaseholders in Chiswick have the right to extend the lease for a further ninety years in accordance with Leasehold Reform legislation. Please give careful deliberation before delaying your Chiswick lease extension. Holding off that expense now simply increases the price you will eventually have to pay for a lease extension
Leasehold premises in Chiswick with in excess of 100 years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. 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 |
|---|---|
| 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. |
| 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 |
| 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. |
The lawyers that we work with undertake Chiswick lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
Harvey was the the leasehold owner of a 2 bedroom apartment in Chiswick on the market with a lease of just over 61 years outstanding. Harvey informally approached his freeholder a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years on the basis of a new rent initially set at £100 per annum and increase every twenty five years thereafter. No ground rent would be due on a lease extension were Harvey to exercise his statutory right. Harvey obtained expert legal guidance and secured satisfactory resolution informally and ending up with a market value flat.
Mrs C Mitchell completed a first floor flat in Chiswick in October 2012. The dilemma was if we could estimate the compensation to the landlord would be for a ninety year extension to my lease. Similar homes in Chiswick with an extended lease were worth £183,600. The average amount of ground rent was £65 collected monthly. The lease terminated in 2082. Considering the 57 years outstanding we calculated the compensation to the freeholder for the lease extension to be between £28,500 and £33,000 plus costs.
An example of a Lease Extension matter before the tribunal for a Chiswick residence is Flat 1 30 Ennismore Avenue in September 2010. the Tribunal adopted and arrived at a premium for the lease extension of £29, 900 This case affected 1 flat. The unexpired residue of the current lease was 68.34 years.