Feltham leases on domestic deteriorating in value. if your lease has approximately 90 years unexpired, you should start considering the need for a lease extension. It is important to recognise that it is that it is financially advisable for a lease extension to take place before the term of the current lease dips lower than 80 years - otherwise a higher amount will be due. Leasehold owners in Feltham will usually be legally entitled to a lease extension; however a solicitor will confirm your eligibility. In some cases you may not qualify. There are also strict deadlines and procedures to comply with once the process is triggered so it’s prudent to be guided by a conveyancing solicitor during the process.
It is generally accepted that a residential leasehold with over 100 years unexpired lease term is worth roughly the same as a freehold. Where an further ninety years added to any lease with more than 30 years remaining, the premises will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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 |
The conveyancers that we work with undertake Feltham 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 conveyancing solicitor we work with provide it.
Half a year ago William, came critically close to the 80-year mark with the lease on his two bedroom apartment in Feltham. In buying his home two decades ago, the lease term was of no significance. Thankfully, it dawned on him that he would soon be paying an escalated premium for a lease extension. William was able to extend his lease just under the wire last July. William and the freeholder ultimately agreed on a premium of £6,000 . If the lease had dropped to less than eighty years, the price would have become more costly by a minimum £1,000.
Ms Shannon Baker moved into a one bedroom apartment in Feltham in November 2006. We are asked if we could approximate the premium could be for a 90 year lease extension. Identical homes in Feltham with an extended lease were worth £242,600. The average amount of ground rent was £45 invoiced yearly. The lease terminated on 18 January 2091. Taking into account 67 years left we estimated the premium to the freeholder for the lease extension to be between £11,400 and £13,200 exclusive of costs.
An example of a Lease Extension decision for a Feltham residence is 147 Redford Close in June 2012. The Tribunal determined the lease extension premium to be at £4,200 This case affected 1 flat. The unexpired term as at the valuation date was 82.93 years.