Gunnersbury leases on residential deteriorating in value. Where your lease has in the region of ninety years unexpired, you should start considering the need for a lease extension. An important point to note is that it is desirable for the lease extension to take place before the term of the existing lease drops lower than eighty years - otherwise a higher amount will be payable. Flat owners in Gunnersbury will mostly qualify for a lease extension; however it’s a good idea to check with a conveyancing solicitor to check if you qualify. In certain situations you may not be entitled. There are prescribed timetables and steps to follow once the process is triggered so it’s sensible to be guided by a conveyancer during the process.
It is conventional wisdom that a property with in excess of one hundred years unexpired lease term is worth approximately the same as a freehold. Where an additional 90 years added to any lease with more than 35 years unexpired, the premises will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| 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. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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 prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Gunnersbury valuers.
Ryan owned a studio apartment in Gunnersbury on the market with a lease of a few days over 61 years unexpired. Ryan informally spoke with his landlord a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to grant an extension on non-statutory terms taking the lease to 125 years subject to a new rent to start with set at £100 per annum and doubled every 25 years thereafter. No ground rent would be payable on a lease extension were Ryan to invoke his statutory right. Ryan obtained expert legal guidance and was able to make a more informed judgement and handle with the matter and readily saleable.
In 2013 we were phoned by Dr K Sharif who, having was assigned a lease of a basement apartment in Gunnersbury in August 2006. The question was if we could shed any light on how much (roughly) compensation to the landlord would likely be to extend the lease by 90 years. Similar flats in Gunnersbury with a long lease were valued about £261,600. The mid-range amount of ground rent was £60 billed annually. The lease concluded on 6 October 2076. Considering the 52 years remaining we approximated the compensation to the freeholder for the lease extension to be within £39,000 and £45,000 exclusive of costs.
An example of a Freehold Enfranchisement matter before the tribunal for a Gunnersbury premises 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 lease term was 64.64 years.