There is no doubt about it a leasehold flat or house in West London is a wasting asset as a result of the shortening lease. If the lease has, beyond 100 years remaining then this decrease may be fractional however there will become a point in time when a lease has under than eighty years remaining as part of the premium you will incur is what is known as a marriage value. This could increase sharply the cost. It is the primary reason why you should consider extending without delay. Most flat owners in West London will meet the qualifying criteria; that being said a lawyer can advise whether you are eligible to extend your lease. In certain situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
Leasehold residencies in West London with more than one hundred 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 property. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| Yorkshire 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. |
Regardless of whether you are a tenant or a landlord in West London,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with West London valuers.
Two years ago Henry, started to get near to the eighty-year mark with the lease on his first floor flat in West London. Having bought his home 19 years ago, the unexpired term was of no importance. Luckily, he noticed he would soon be paying way over the odds for Extending the lease. Henry was able to extend his lease at the eleventh hour last September. Henry and the landlord ultimately settled on sum of £6,000 . If he failed to meet the deadline, the premium would have increased by at least £1,050.
In 2010 we were called by Mr and Mrs. E Mitchell who, having owned a one bedroom apartment in West London in March 1996. The dilemma was if we could approximate the compensation to the landlord could be to prolong the lease by a further 90 years. Identical properties in West London with a long lease were worth £176,200. The average ground rent payable was £65 billed quarterly. The lease came to a finish on 10 September 2081. Taking into account 56 years left we estimated the compensation to the landlord for the lease extension to be between £29,500 and £34,000 exclusive of costs.
An example of a Lease Extension matter before the tribunal for a West London residence 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 was in relation to 2 flats. The unexpired term was 72.39 years.