With a residential leasehold premises in Twickenham, you are actually buying an entitlement to live in a property for a set period of time. In recent years flat leases typically tend to be for 99 years or 125. Many leasehold owners become complacent as this seems like a long period of time, you may think about extending the lease sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly particularly when there are fewer than 80 years left. Leasehold owners in Twickenham with a lease approaching 81 years unexpired should seriously think of extending it as soon as possible. When a lease has less than eighty years outstanding, under the relevant legislation the landlord is entitled to calculate and demand a larger amount, assessed on a technical computation, known as “marriage value” which is due.
Leasehold properties in Twickenham with more than 100 years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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. |
Regardless of whether you are a tenant or a landlord in Twickenham,the lease extension solicitors that we work with will always be prepared 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 the wake of 9 months of unsuccessful discussions with the landlord of her garden apartment in Twickenham, Georgina started the lease extension process just as her lease was approaching the crucial 80-year threshold. The transaction was finalised in February 2015. The landlord’s costs were negotiated to a tad over 550 pounds.
Mr Teddy David was assigned a lease of a first floor flat in Twickenham in February 2005. The dilemma was if we could approximate the premium would likely be for a 90 year extension to my lease. Similar properties in Twickenham with a long lease were in the region of £210,000. The average amount of ground rent was £50 invoiced yearly. The lease ended in 2106. Having 80 years unexpired we calculated the compensation to the landlord to extend the lease to be within £8,600 and £9,800 exclusive of professional charges.
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 affected 1 flat. The number of years remaining on the existing lease(s) was 60.45 years.