When it comes to domestic leasehold premises in Hanworth, you are actually buying an entitlement to reside in a property for a prescribed time frame. These days flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned as this seems like a lengthy period of time, you may think about extending the lease sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease increases markedly especially once there are fewer than eighty years remaining. Residents in Hanworth with a lease nearing 81 years unexpired should seriously consider extending it as soon as possible. Once a lease has under eighty years left, under the current Act the landlord is entitled to calculate and demand a greater amount, based on a technical computation, strangely termed as “marriage value” which is payable.
Leasehold residencies in Hanworth with over 100 years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate charges warrant it.
| 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. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| 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 |
Irrespective of whether you are a tenant or a landlord in Hanworth,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Hanworth valuers.
Trailing unsuccessful discussions with the landlord of her garden apartment in Hanworth, Ella commenced the lease extension process as the 80 year deadline was swiftly nearing. The lease extension completed in September 2008. The landlord’s charges were negotiated to about 550 pounds.
Last Spring we were e-mailed by Mr and Mrs. B Nelson , who acquired a studio flat in Hanworth in July 2011. We are asked if we could estimate the premium would likely be for a 90 year lease extension. Comparable residencies in Hanworth with 100 year plus lease were valued about £200,000. The mid-range ground rent payable was £50 billed per annum. The lease came to a finish in 2102. Having 78 years unexpired we approximated the compensation to the landlord for the lease extension to be within £8,600 and £9,800 plus fees.
An example of a Lease Extension matter before the tribunal for a Hanworth premises 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 was 82.93 years.