Ladbroke Grove leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease becomes more expensive. It is the case that most Ladbroke Grove tenants have the right to extend their lease by an additional ninety years in accordance with the 1993 Leasehold Reform Act. If you are a leasehold owner in Ladbroke Grove you must investigate if your lease has between 70 and ninety years left. There are good reasons why a Ladbroke Grove leaseholder with a lease having around 80 years remaining should take action to ensure that a lease extension is actioned without delay
It is generally accepted that a property with more than 100 years remaining is worth roughly the equivalent as a freehold. Where an further 90 years added to any lease with more than 30 years unexpired, the premises will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Godiva Mortgages | 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 |
| 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. |
Using our service will provide you better control over the value of your Ladbroke Grove leasehold, as your property will be more valuable and saleable in terms of lease length should you decide to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Luke owned a 2 bedroom apartment in Ladbroke Grove being marketed with a lease of fraction over 59 years remaining. Luke on an informal basis spoke with his landlord a well known London-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 an increased rent to £125 per annum. No ground rent would be due on a lease extension were Luke to exercise his statutory right. Luke obtained expert legal guidance and was able to make an informed judgement and handle with the matter and ending up with a market value flat.
Last Summer we were e-mailed by Mr G Carter , who completed a studio flat in Ladbroke Grove in March 2006. We are asked if we could estimate the compensation to the landlord would be for a 90 year lease extension. Comparative premises in Ladbroke Grove with an extended lease were worth £176,200. The mid-range amount of ground rent was £65 collected quarterly. The lease lapsed on 26 September 2081. Taking into account 56 years as a residual term we estimated the premium to the freeholder for the lease extension to be between £29,500 and £34,000 not including fees.
An example of a Lease Extension matter before the tribunal for a Ladbroke Grove flat is Flat 1 57 Oxford Gardens in January 2014. the Tribunal decided that the premium to be paidfor a new lease is £61,650.00. This case affected 1 flat. The number of years remaining on the existing lease(s) was 60 years.