The value of Turnham Green leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of a lease extension can increase materialy once the unexpired lease term is below than eighty years
Leasehold properties in Turnham Green with more than 100 years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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: • 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 • The value of the property subject to the short remaining term is £500,000 or more AND • 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; |
| Birmingham Midshires | Minimum 70 years from the date 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. |
Lease extensions in Turnham Green can be a difficult process. We recommend you procure guidance from a lawyer and valuer with experience in lease extensions.
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 in-depth market knowledge dealing with Turnham Green lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In 2014 Adam, started to get near to the eighty-year threshold with the lease on his basement apartment in Turnham Green. Having purchased his flat twenty years previously, the unexpired term was of little importance. Thankfully, he became aware that he would soon be paying way over the odds for Extending the lease. Adam arranged for a lease extension just ahead of time last June. Adam and the freeholder subsequently agreed on sum of £6,000 . If the lease had dropped lower than eighty years, the amount would have gone up by a minimum £900.
In 2014 we were contacted by Mr and Mrs. S Ward who, having took over the lease of a basement apartment in Turnham Green in June 2001. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord could be to extend the lease by 90 years. Similar homes in Turnham Green with 100 year plus lease were in the region of £189,000. The average ground rent payable was £55 billed per annum. The lease came to a finish on 27 May 2079. Taking into account 53 years left we estimated the premium to the landlord to extend the lease to be between £28,500 and £33,000 exclusive of fees.
An example of a Lease Extension decision for a Turnham Green property is Flat 1 30 Ennismore Avenue in September 2010. the Tribunal adopted and arrived at a premium for the lease extension of £29, 900 This case related to 1 flat. The remaining number of years on the lease was 68.34 years.