Twickenham leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease becomes more expensive. Legislation has been in place for sometime now which permits qualifying Twickenham residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Twickenham you really ought to see if your lease has between seventy and ninety years left. There are compelling reasons why a Twickenham leaseholder with a lease having around eighty years remaining should take steps to ensure that a lease extension is effected without delay
Leasehold residencies in Twickenham with in excess of one hundred years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in buying the freehold unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Chelsea 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. |
| 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. |
| 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 |
The conveyancing solicitors that we work with procure 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.
Subsequent to lengthy correspondence with the landlord of her ground floor apartment in Twickenham, Jasmine initiated the lease extension process as the 80 year mark was fast nearing. The legal work was finalised in February 2009. The freeholder’s costs were restricted to under 700 pounds.
Mr and Mrs. S Hill bought a first floor apartment in Twickenham in February 1995. The dilemma was if we could estimate the premium would likely be for a 90 year extension to my lease. Identical homes in Twickenham with an extended lease were in the region of £191,400. The mid-range amount of ground rent was £55 billed yearly. The lease expiry date was on 4 February 2079. Taking into account 54 years as a residual term we approximated the premium to the landlord for the lease extension to be within £34,200 and £39,600 not including fees.
An example of a Lease Extension decision for a Twickenham flat 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 unexpired residue of the current lease was 60.45 years.