Chances are that if you own a flat in Hanwell you actually own a long leasehold interest over your property
It is generally considered that a property with more than 100 years remaining is worth approximately the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years ahead.
| 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. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Birmingham Midshires | 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Retaining our service gives you better control over the value of your Hanwell leasehold, as your property will be more valuable and marketable in relation to the lease length should you decide to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Two years ago Connor, started to get near to the eighty-year threshold with the lease on his ground floor apartment in Hanwell. Having purchased his flat twenty years ago, the lease term was of no interest. by good luck, he became aware that he needed to take action soon on Extending the lease. Connor was able to extend his lease just under the wire in August. Connor and the freeholder ultimately agreed on a premium of £6,000 . If the lease had dropped to less than 80 years, the price would have escalated by at least £1,150.
In 2013 we were e-mailed by Mr and Mrs. K White who, having purchased a one bedroom flat in Hanwell in June 2006. The dilemma was if we could shed any light on how much (approximately) price would likely be for a ninety year lease extension. Comparative homes in Hanwell with an extended lease were worth £261,600. The average ground rent payable was £60 invoiced yearly. The lease terminated in 2078. Taking into account 52 years remaining we calculated the compensation to the freeholder for the lease extension to be within £39,000 and £45,000 plus professional charges.
An example of a Freehold Enfranchisement case for a Hanwell property is 6 Jessamine Road in August 2013. The Tribunals valuation (as annexed to the decision) calculated the amount payable as £18,355 for the freehold reversion This case affected 2 flats. The unexpired term as at the valuation date was 72.39 years.