It’s a harsh certainty that a Twickenham residential lease is a wasting asset. The lease value reduces in proportion to its lease length. The extent of this is taken for granted in the early years due to the depreciation being disguised by increases in the Twickenham property market.Once your lease gets to 85ish years, you need to start thinking about a lease extension. If the number of years remaining dips under 80 years, you will then be required to pay 50% of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add the property Most leasehold owners in Twickenham will be able to extend under the legislation; however a conveyancer will be able to confirm if you qualify for an extension. In some cases you may not qualify. There are also strict timetables and procedures to follow once the process is instigated and you will need to be guided by your lawyer throughout the formalities.
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 value the same as a freehold interest in your home. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date 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 |
Regardless of whether you are a tenant or a freeholder in Twickenham,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 in-depth market knowledge and the close ties they enjoy with Twickenham valuers.
In recent months Eli, started to get close to the 80-year mark with the lease on his one bedroom apartment in Twickenham. In buying his flat twenty years ago, the length of the lease was of minimal concern. As luck would have it, he noticed he needed to take action soon on Extending the lease. Eli arranged for a lease extension at the eleventh hour in August. Eli and the freeholder via the management company eventually agreed on an amount of £6,000 . If the lease had descended to less than eighty years, the amount would have gone up by at least £850.
In 2009 we were called by Mrs Jordan Wright who, having purchased a one bedroom apartment in Twickenham in May 1998. We are asked if we could estimate the premium would be for a ninety year extension to my lease. Identical properties in Twickenham with 100 year plus lease were in the region of £260,200. The average ground rent payable was £65 collected every twelve months. The lease elapsed in 2092. Considering the 66 years outstanding we calculated the compensation to the landlord to extend the lease to be between £15,200 and £17,600 plus fees.
An example of a Lease Extension decision 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 affected 1 flat. The number of years remaining on the existing lease(s) was 60.45 years.