Why you should commence your Gunnersbury lease extension
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Why you should start your Gunnersbury lease extension today: </h3>
<h4> A <a href="http://www.lendermonitor.com/conveyancing/loc/gunnersbury">Gunnersbury</a> lease depreciates with the years remaining on the lease.
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<p> With a domestic leasehold premises in Gunnersbury, you are actually buying an entitlement to live in a property for a prescribed time frame. Modern flat leases typically tend to be for 99 years or 125. Many leasehold owners become complacent as this seems like a lengthy period of time, you may think about extending the lease sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease becomes disproportionately more expensive notably when there are less than eighty years remaining. Residents in Gunnersbury with a lease nearing 81 years left should seriously think of extending it without delay. When the lease term has less than eighty years outstanding, under the relevant legislation the freeholder is entitled to calculate and levy a greater premium, based on a technical calculation, strangely termed as “marriage value” which is due. <h4>An extended lease is almost the same value as a freehold</h4>
<p> It is conventional wisdom that a residential leasehold with more than one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional 90 years added to any lease with more than 45 years unexpired, the premises will be worth the same as a freehold for decades to come.
<h4>Banks and Building Societies may decide not to grant a mortgage on a short lease</h4>
Most mortgage lenders have narrowed their lending criteria in recent years and borrowers are finding it increasingly difficult to raise funding or re-mortgage against flats with shorter lease terms, particularly under 75 years as they are regarded as inadequate security.
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<th> Requirement
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<td>Bank of Scotland</td>
<td> Minimum 70 years from the date of the mortgage.
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<td>Barclays plc</td>
<td> Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below).<br /><br />Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office.<br /><br />Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval:<br /><br />• Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND<br />• The value of the property subject to the short remaining term is £500,000 or more AND<br />• The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing;
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<td>Leeds Building Society</td>
<td> 85 years remaining from the start of the mortgage.
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<td>Skipton Building Society</td>
<td> 85 years from the date of completion of the mortgage<br /><br />For Buy to Let cases:<br />- lettings must not breach any of the lessee’s covenants; and<br />- consent of the lessor to lettings must be obtained if necessary
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<td>Yorkshire Building Society</td>
<td> 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.
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What makes us experts in Gunnersbury lease extensions?
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<p> Engaging our service gives you increased control over the value of your Gunnersbury leasehold, as your property will be more valuable and marketable in relation to the lease length should you decide to sell.
The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions. <h4>
Gunnersbury Lease Extension Case Summaries:
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<h5> Sarah, Gunnersbury, West London,</h5>
<p> Following protracted discussions with the landlord of her basement flat in Gunnersbury, Sarah initiated the lease extension process as the eighty year deadline was swiftly coming. The lease extension was concluded in July 2015. The freeholder’s fees were kept to an absolute minimum.
<h5>Gunnersbury case:</h5>
<p> Mr and Mrs. F Lewis moved into a garden flat in Gunnersbury in March 2012. The dilemma was if we could estimate the compensation to the landlord would likely be to extend the lease by an additional years. Identical properties in Gunnersbury with a long lease were in the region of £285,000. The mid-range amount of ground rent was £55 billed per annum. The lease ended on 20 July 2105. Taking into account 79 years as a residual term we estimated the compensation to the landlord for the lease extension to be within £13,300 and £15,400 exclusive of costs.
<div> <h5>Decision in Ealing</h5>
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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 related to 2 flats. The remaining number of years on the lease was 64.64 years.
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