There is no doubt about it a leasehold flat or house in Hanwell is a wasting asset as a result of the shortening lease. If the residual term has, more than 99 years remaining then this decrease may be of little impact nevertheless there will become a point in time when a lease has less than 80 years remaining as part of the premium you will incur is what is termed as a marriage value. This could increase sharply the cost. It is the main reason why you should consider extending sooner rather than later. Many flat owners in Hanwell will qualify for this right; nevertheless a conveyancing solicitor will be able to advise whether you qualify for a lease extension. In certain situations you may not qualify, the most frequent reason being that you have owned the property for under two years.
It is conventional wisdom that a residential leasehold with over 100 years unexpired lease term is worth approximately the same as a freehold. Where an further ninety years added to any lease with more than 30 years left, the property will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Regardless of whether you are a tenant or a freeholder in Hanwell,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 experience and the close ties they enjoy with Hanwell valuers.
14 months ago Evan, came seriously close to the 80-year threshold with the lease on his studio apartment in Hanwell. In buying his home 19 years previously, the length of the lease was of little bearing. Luckily, he became aware that he needed to take action soon on a lease extension. Evan was able to extend his lease just under the wire in March. Evan and the freeholder via the managing agents ultimately settled on sum of £5,500 . If the lease had slipped to less than eighty years, the price would have become more costly by at least £1,100.
Dr Jamie Jones was assigned a lease of a one bedroom apartment in Hanwell in March 2012. The dilemma was if we could approximate the compensation to the landlord could be for a 90 year lease extension. Identical flats in Hanwell with a long lease were worth £225,400. The mid-range ground rent payable was £45 invoiced annually. The lease concluded in 2088. Considering the 64 years outstanding we estimated the compensation to the freeholder to extend the lease to be between £15,200 and £17,600 not including professional charges.
An example of a Freehold Enfranchisement decision for a Hanwell flat 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 affected 2 flats. The unexpired lease term was 72.39 years.