When it comes to domestic leasehold property in Twickenham, you are actually purchasing an entitlement to reside in a property for a prescribed time frame. In recent years flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you may consider a lease extension sooner as opposed to later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly particularly once there are less than 80 years left. Anyone in Twickenham with a lease nearing 81 years remaining should seriously consider extending it without delay. When the lease term has fewer than eighty years outstanding, under the relevant Act the landlord is entitled to calculate and levy a larger amount, assessed on a technical multiplication, strangely termed as “marriage value” which is payable.
It is conventional wisdom that a property with in excess of 100 years remaining is worth approximately the equivalent as a freehold. Where an additional ninety years added to any lease with more than 35 years left, the property will be worth the same as a freehold for many years ahead.
| 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. |
| 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. |
| Coventry Building Society | 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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. |
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 Alfie, started to get close to the 80-year mark with the lease on his first floor apartment in Twickenham. In buying his home two decades ago, the lease term was of little interest. Luckily, he noticed he needed to take steps soon on Extending the lease. Alfie extended the lease just under the wire in July. Alfie and the freeholder via the management company ultimately agreed on sum of £5,000 . If the lease had slipped to less than eighty years, the premium would have become more costly by a minimum £1,100.
Dr N Martínez bought a garden flat in Twickenham in January 2008. The dilemma was if we could estimate the premium would be to prolong the lease by a further 90 years. Comparable residencies in Twickenham with an extended lease were valued about £300,000. The average ground rent payable was £50 collected every twelve months. The lease ran out on 8 January 2102. Taking into account 76 years left we estimated the premium to the freeholder for the lease extension to be between £8,600 and £9,800 not including professional charges.
An example of a Lease Extension matter before the tribunal 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 affected 1 flat. The unexpired residue of the current lease was 60.45 years.