Unfortunately that a Paddington residential lease is a deteriorating asset. As the lease term reduces so does the value of the property. The extent of this is not fully appreciated in the early years due to the reduction being disguised by increases in the Paddington property market.Where your lease has approximately ninety years left, you should start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease slips below eighty years - otherwise a higher amount will be due. The majority of leasehold owners in Paddington will be able to extend under the legislation; however a lawyer should be able to confirm whether you are eligibility. In some situations you may not be entitled. There are also strict timeframes and procedures to follow once the process is initiated and you will need to be guided by your conveyancing solicitor throughout the process.
Leasehold residencies in Paddington with over one hundred years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Chelsea Building Society | |
| Godiva Mortgages | |
| Santander | |
| TSB |
Lease extensions in Paddington can be a difficult process. We recommend you obtain professional help from a conveyancer and valuer well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience procuring Paddington lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Thomas was the the leasehold owner of a studio apartment in Paddington being marketed with a lease of just over sixty years outstanding. Thomas on an informal basis spoke with his freeholder 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 subject to a new rent initially set at £200 per annum and increase every 25 years thereafter. No ground rent would be payable on a lease extension were Thomas to exercise his statutory right. Thomas procured expert advice and secured an acceptable deal without resorting to tribunal and readily saleable.
In 2014 we were called by Mrs G Torres who, having bought a one bedroom apartment in Paddington in May 2006. The question was if we could estimate the compensation to the landlord could be for a ninety year extension to my lease. Comparable homes in Paddington with an extended lease were valued about £275,000. The mid-range amount of ground rent was £55 invoiced yearly. The lease ended in 2103. Considering the 77 years left we calculated the premium to the freeholder for the lease extension to be within £13,300 and £15,400 plus expenses.
An example of a Lease Extension matter before the tribunal for a Paddington residence is Flats 37 & 39 88/90 Portland Place in December 2010. The Tribunal determined that the premium payable for the lease extensions in respect of these two flats is as follows:- For Flat 37, the sum of £385,230.00 For Flat 39, the sum of £436,780.00 This case related to 2 flats. The remaining number of years on the lease was 24.02 years.