As the length of the unexpired term of a Hanwell residential lease diminished so does its value and therefore the value of your property. If the residual term has, over 125 years to run then this decrease may be negligible nevertheless there will become a point in time when a lease has fewer than eighty years remaining as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the primary reason why you should extend the lease sooner rather than later. The majority of flat owners in Hanwell will meet the qualifying criteria; however a conveyancer can advise if you qualify for a lease extension. In certain situations you may not qualify, the most common reason being that you have owned the property for less than two years.
Leasehold residencies in Hanwell with in excess of 100 years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little upside in buying the freehold unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Regardless of whether you are a tenant or a freeholder in Hanwell,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Hanwell valuers.
In the wake of 9 months of protracted negotiations with the landlord of her one bedroom apartment in Hanwell, Hannah commenced the lease extension process just as her lease was coming close to the critical 80-year threshold. The transaction was concluded in September 2015. The landlord’s charges were restricted to about five hundred pounds.
Last year we were e-mailed by Mr and Mrs. F Jackson , who bought a one bedroom apartment in Hanwell in August 2009. The dilemma was if we could shed any light on how much (approximately) price could be to prolong the lease by ninety years. Comparable residencies in Hanwell with 100 year plus lease were valued about £270,000. The average ground rent payable was £55 invoiced yearly. The lease elapsed on 14 August 2100. Given that there were 75 years unexpired we approximated the premium to the landlord for the lease extension to be between £9,500 and £11,000 plus fees.
An example of a Freehold Enfranchisement decision for a Hanwell premises is 6 Jessamine Road in August 2013. The Tribunals valuation (as annexed to the decision) calculated the amount payable as £18,355 for the freehold reversion This case related to 2 flats. The remaining number of years on the lease was 72.39 years.