Hanwell leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease gets more expensive. Legislation has been in place for sometime now allowing qualifying Hanwell residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Hanwell you should check if your lease has between 70 and 90 years remaining. There are compelling reasons why a Hanwell leaseholder with a lease having around 80 years unexpired should take steps to ensure that a lease extension is effected without delay
Leasehold properties in Hanwell with over 100 years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little upside in buying the freehold unless savings on ground rent and estate charges warrant it.
| 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. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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. |
Lease extensions in Hanwell can be a difficult process. We recommend you get professional help from a lawyer and surveyor with experience in lease extensions.
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 in-depth market knowledge procuring Hanwell lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Eli owned a studio flat in Hanwell being marketed with a lease of just over fifty eight years unexpired. Eli on an informal basis approached his landlord being a well known Manchester-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent at the outset set at £150 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Eli to invoke his statutory right. Eli obtained expert advice and secured satisfactory resolution without resorting to tribunal and readily saleable.
Dr Harvey Jackson purchased a basement apartment in Hanwell in March 2006. We are asked if we could shed any light on how much (roughly) premium would likely be for a ninety year extension to my lease. Identical premises in Hanwell with a long lease were valued about £285,000. The mid-range amount of ground rent was £55 collected yearly. The lease expired on 23 April 2105. Given that there were 79 years left we calculated the compensation to the freeholder for the lease extension to be between £13,300 and £15,400 not including professional charges.
An example of a Freehold Enfranchisement matter before the tribunal for a Hanwell flat 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 related to 2 flats. The unexpired residue of the current lease was 72.39 years.