Twickenham leases on residential properties are gradually losing value. Where your lease has in the region of ninety years unexpired, you should start thinking about a lease extension. An important point to note is that it is financially advisable for your lease extension to be in place before the term of the existing lease dips under 80 years - otherwise a higher amount will be due. Flat owners in Twickenham will usually qualify for a lease extension; however a solicitor will confirm your eligibility. In certain cases you may not be entitled. There are prescribed deadlines and formalities to comply with once the process has commenced so it’s sensible to be guided by a conveyancer during the process.
It is generally accepted that a property with in excess of 100 years remaining is worth approximately the equivalent as a freehold. Where an additional 90 years added to any lease with more than 30 years remaining, the residence will be equivalent in value to a freehold for decades to come.
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| Yorkshire Building Society | 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. |
The conveyancing solicitors that we work with undertake Twickenham 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 conveyancer we work with provide it.
Last Winter Liam, came critically close to the 80-year mark with the lease on his two bedroom apartment in Twickenham. Having bought his home two decades ago, the unexpired term was of minimal interest. Luckily, it dawned on him that he needed to take steps soon on a lease extension. Liam extended the lease just ahead of time last March. Liam and the landlord who owned the flat above eventually settled on an amount of £6,000 . If the lease had descended to less than 80 years, the figure would have gone up by a minimum £1,075.
Mr and Mrs. E Roux completed a purpose-built flat in Twickenham in October 2011. The dilemma was if we could approximate the premium could be to prolong the lease by an additional years. Comparable residencies in Twickenham with an extended lease were in the region of £205,000. The average amount of ground rent was £50 billed every twelve months. The lease ran out on 19 October 2104. Given that there were 78 years left we calculated the compensation to the landlord to extend the lease to be between £8,600 and £9,800 plus expenses.
An example of a Lease Extension case for a Twickenham residence 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 was in relation to 1 flat. The remaining number of years on the lease was 60.45 years.