Hanwell leases on residential properties are gradually diminishing 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 entitles qualifying Hanwell residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Hanwell you really ought to investigate if your lease has between seventy and ninety years left. There are compelling reasons why a Hanwell leaseholder with a lease having around eighty years unexpired should take steps to make sure that a lease extension is effected without delay
Leasehold residencies in Hanwell with over 100 years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Hanwell can be a difficult process. We recommend you secure professional help from a conveyancer and valuer well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience dealing with Hanwell lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Joseph owned a 2 bedroom apartment in Hanwell on the market with a lease of a few days over 61 years left. Joseph on an informal basis spoke with his landlord being a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent to start with set at £100 per annum and doubled every twenty five years thereafter. No ground rent would be due on a lease extension were Joseph to invoke his statutory right. Joseph obtained expert advice and was able to make an informed judgement and handle with the matter and sell the property.
Mr and Mrs. B Ramírez took over the lease of a purpose-built flat in Hanwell in November 1997. The question was if we could shed any light on how much (approximately) premium would be to extend the lease by a further 90 years. Identical flats in Hanwell with a long lease were worth £183,600. The mid-range amount of ground rent was £65 collected yearly. The lease ended in 2082. Given that there were 57 years as a residual term we approximated the premium to the freeholder to extend the lease to be within £28,500 and £33,000 not including professional charges.
An example of a Freehold Enfranchisement decision for a Hanwell premises 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 was in relation to 2 flats. The remaining number of years on the lease was 72.39 years.