Gunnersbury leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease gets more expensive. It is the case that most Gunnersbury tenants have the right to extend their lease by an additional 90 years under the 1993 Leasehold Reform Act. If you are a leasehold owner in Gunnersbury you would be well advised to investigate if your lease has between 70 and ninety years left. In particular once the remaining lease term slips under 80 years, the premium due on any lease extension increases dramatically as an element of the premium you pay is what is known as a marriage value
It is conventional wisdom that a property with more than one hundred years unexpired lease term is worth roughly the same as a freehold. Where an further ninety years added to all but the shortest lease, the premises will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancing solicitors that we work with handle Gunnersbury 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 conveyancer we work with provide it.
Trailing protracted correspondence with the landlord of her garden apartment in Gunnersbury, Mia initiated the lease extension process as the 80 year deadline was fast coming. The lease extension was concluded in August 2009. The freeholder’s costs were negotiated to slightly above 600 GBP.
Last month we were e-mailed by Ms I Kelly , who acquired a basement apartment in Gunnersbury in June 2007. We are asked if we could estimate the premium would be for a ninety year extension to my lease. Similar residencies in Gunnersbury with a long lease were in the region of £176,200. The mid-range ground rent payable was £65 collected quarterly. The lease expired on 17 April 2081. Given that there were 56 years unexpired we estimated the compensation to the freeholder for the lease extension to be within £29,500 and £34,000 not including fees.
An example of a Freehold Enfranchisement matter before the tribunal 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.