The value of Twickenham leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of a lease extension can escalate materialy once the unexpired lease term is less than eighty years
Leasehold properties in Twickenham with over one hundred years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little upside in buying the freehold unless savings on ground rent and service charges justify 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
Regardless of whether you are a tenant or a landlord in Twickenham,the lease extension solicitors 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 Twickenham valuers.
Last Summer Owen, started to get close to the eighty-year mark with the lease on his two bedroom flat in Twickenham. Having bought his flat two decades ago, the lease term was of little bearing. Fortunately, it dawned on him that he would imminently be paying way over the odds for a lease extension. Owen extended the lease at the eleventh hour last July. Owen and the landlord in the end settled on sum of £6,000 . If the lease had slid to less than 80 years, the amount would have gone up by at least £900.
Dr C Brown owned a one bedroom apartment in Twickenham in October 2000. We are asked if we could approximate the compensation to the landlord could be to extend the lease by a further 90 years. Comparative premises in Twickenham with 100 year plus lease were worth £198,800. The average amount of ground rent was £55 collected every twelve months. The lease expired in 2079. Having 55 years left we approximated the compensation to the landlord for the lease extension to be within £33,300 and £38,400 exclusive of costs.
An example of a Lease Extension matter before the tribunal for a Twickenham property is Ground Floor Flat 91 Bath Road in May 2009. in a case where the freeholder could not be traced, the Brentford County Court ordered that the Lease be surrendered in return for the grant of a new lease of the Premises at a premium determined by the Leasehold Valuation Tribunal. The tribunal concluded that the price payable by the Applicant for the new lease of the premises be £15,900 This case related to 1 flat. The number of years remaining on the existing lease(s) was 60.45 years.