West London leases on domestic properties are gradually losing value. if your lease has approximately ninety years left, you should start considering the need for a lease extension. 80 years is a significant number: when the remaining term of a lease drops below this level then you begin incurring an additional element called marriage value. Leasehold owners in West London will usually be legally entitled to a lease extension; however it’s a good idea to check with a conveyancing solicitor to check if you qualify. In certain circumstances you may not qualify. There are prescribed timetables and procedures to follow once the process is triggered so it’s wise to be guided by a lawyer during the process.
Leasehold residencies in West London with over one hundred years left 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 premises. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and maintenance charges merit it.
|Chelsea Building Society||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.|
|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.|
|Santander|| You must report the unexpired lease term to us and await our instructions if: |
1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or
2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or
3. no valuation report is provided
However, we will not accept a lease where on expiry of the mortgage:
(i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or
(ii) less than 30 years remain and the loan is repaid on a capital and interest basis
We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder.
|Virgin||85 years at the time of completion. If it's less, we require it to be extended on or before completion.|
The conveyancing solicitors that we work with undertake West London 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.
Two years ago Harvey, came dangerously close to the 80-year threshold with the lease on his studio apartment in West London. Having purchased his home 18 years ago, the unexpired term was of minimal relevance. Thankfully, he realised he needed to take steps soon on a lease extension. Harvey extended the lease just ahead of time last August. Harvey and the landlord who owned the flat above eventually agreed on the final figure of £5,000 . If the lease had descended to less than 80 years, the premium would have increased by at least £875.
Last Spring we were e-mailed by Mrs L Adams , who owned a purpose-built flat in West London in April 2011. The question was if we could shed any light on how much (approximately) premium would likely be to extend the lease by an additional years. Identical premises in West London with a long lease were valued around £260,000. The average amount of ground rent was £50 billed annually. The lease expiry date was on 18 April 2095. Given that there were 72 years remaining we estimated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 exclusive of fees.
An example of a Lease Extension case for a West London property 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 unexpired residue of the current lease was 72.39 years.