Owning a apartment usually means owning a lease of the property, which has a finite term of years. The lease will normally be granted for a fixed period of time , ordinarily 99 or 125 years, although we have witnessed longer and shorter terms in West London. Inevitably, the term of lease left reduces as time goes by. This is often overlooked and only becomes a problem when the residence has to be disposed of or refinanced. The shorter the lease the less it is worth and the more expensive it will be to extend the lease. Eligible long lease owners in West London have the right to extend the lease for an additional 90 years under Leasehold Reform legislation. You should give careful consideration before delaying your West London lease extension. Holding off that expense now simply increases the price you will ultimately incur for a lease extension
It is generally accepted that a property with over one hundred years remaining is worth roughly the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the property will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Coventry Building Society | 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. |
| 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. |
Lease extensions in West London can be a difficult process. We recommend you secure professional help from a conveyancing solicitor 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 procuring West London lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last year Connor, came precariously close to the eighty-year threshold with the lease on his first floor apartment in West London. In buying his property two decades ago, the length of the lease was of minimal relevance. As luck would have it, he recognised he would imminently be paying an escalated premium for a lease extension. Connor arranged for a lease extension just under the wire last May. Connor and the freeholder ultimately settled on sum of £5,000 . If the lease had gone to less than 80 years, the price would have gone up by a minimum £850.
Mr S Davis was assigned a lease of a ground floor flat in West London in October 2008. We are asked if we could estimate the compensation to the landlord could be for a 90 year extension to my lease. Similar flats in West London with an extended lease were worth £166,400. The mid-range ground rent payable was £60 billed quarterly. The lease ran out in 2080. Given that there were 54 years unexpired we estimated the compensation to the landlord for the lease extension to be between £32,300 and £37,400 plus expenses.
An example of a Lease Extension matter before the tribunal for a West London flat is 137 & 139 Haberdasher Street in December 2013. The Tribunal determines in accordance with section 48 and Schedule 13 of the Leasehold Reform, Housing and Urban Development Act 1993 that the premium for the extended lease for each Property should be £12,350.00. This case related to 2 flats. The remaining number of years on the lease was 72.39 years.