The nearer a domestic lease in Osterley nears to zero years unexpired, the more it reduces the value of the property. Where the residual term has, more than 99 years to run then this decrease may be negligible that being said there will become a point in time when a lease has less than 80 years left as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the primary logic behind why you should consider extending sooner as opposed to later. Many flat owners in Osterley will qualify for this right; that being said a lawyer can confirm if you qualify for a lease extension. In certain situations you may not qualify, the most common reason being that you have owned the property for less than two years.
It is generally accepted that a residential leasehold with over one hundred years remaining is worth approximately the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be equivalent in value to a freehold for decades to come.
| 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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 freeholder in Osterley,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Osterley valuers.
Adam was the the leasehold owner of a studio apartment in Osterley on the market with a lease of just over 61 years unexpired. Adam informally contacted his freeholder being a well known local-based freehold company for a lease extension. The freeholder was keen to agree an extension on non-statutory terms taking the lease to 125 years subject to a new rent initially set at £200 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Adam to invoke his statutory right. Adam procured expert advice and was able to make an informed judgement and deal with the matter and sell the property.
Last Christmas we were phoned by Ms I Campbell , who purchased a basement flat in Osterley in April 1996. The question was if we could approximate the price would likely be for a 90 year lease extension. Comparative properties in Osterley with a long lease were valued about £191,000. The average ground rent payable was £65 invoiced yearly. The lease lapsed in 2083. Having 58 years unexpired we approximated the premium to the freeholder for the lease extension to be within £23,800 and £27,400 not including professional charges.
An example of a Lease Extension decision for a Osterley flat is Ground Floor Flat 91 Bath Road in May 2009. in a case where the freeholder could not be traced, the Brentford County Court ordered that the Lease be surrendered in return for the grant of a new lease of the Premises at a premium determined by the Leasehold Valuation Tribunal. The tribunal concluded that the price payable by the Applicant for the new lease of the premises be £15,900 This case was in relation to 1 flat. The number of years remaining on the existing lease(s) was 60.45 years.