Owning a apartment usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. your lease will usually be granted for a set period of time , usually 99 or 125 years, although we have come across longer and shorter terms in Osterley Park. Clearly, the length of lease left reduces over time. This is often ignored and only raises itself as an issue when the flat or house needs to be sold or refinanced. The shorter the lease the lower the value of the property and the more expensive it will be to obtain a lease extension. Eligible leaseholders in Osterley Park have the right to extend the lease for an additional ninety years under legislation. Do give careful attention before delaying your Osterley Park lease extension. Holding off that expense now only increases the price you will ultimately have to pay for a lease extension
It is conventional wisdom that a residential leasehold with more than 100 years remaining is worth roughly the same as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be worth the same as a freehold for many years in the future.
| 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
The lawyers that we work with undertake Osterley Park 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 lawyer we work with provide it.
Elijah was the the leasehold owner of a conversion apartment in Osterley Park on the market with a lease of a little over 61 years outstanding. Elijah on an informal basis contacted his freeholder being a well known Manchester-based freehold company for a lease extension. The freeholder was keen to give an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent initially set at £150 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Elijah to invoke his statutory right. Elijah obtained expert legal guidance and secured satisfactory deal without going to tribunal and sell the flat.
Last Summer we were e-mailed by Mr and Mrs. E Lefèvre , who purchased a recently refurbished flat in Osterley Park in May 2009. We are asked if we could shed any light on how much (roughly) compensation to the landlord would likely be for a 90 year lease extension. Similar flats in Osterley Park with an extended lease were in the region of £210,600. The mid-range ground rent payable was £45 collected per annum. The lease came to a finish on 8 April 2088. Considering the 62 years outstanding we approximated the premium to the landlord to extend the lease to be within £18,100 and £20,800 exclusive of professional charges.
An example of a Freehold Enfranchisement matter before the tribunal for a Osterley Park premises is 6 Jessamine Road in August 2013. The Tribunals valuation (as annexed to the decision) calculated the amount payable as £18,355 for the freehold reversion This case affected 2 flats. The unexpired lease term was 72.39 years.