It’s an underpublicised truth that a Heston residential lease is a wasting asset. As the lease term reduces so does the value of the property. The extent of this is not fully appreciated in the first few years due to the deflation being disguised by increases in the Heston property prices.Where your lease has approximately 90 years left, you need to start thinking about a lease extension. If lease term drops below 80 years, you will then be required to pay 50% of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. The marriage fee is the amount of additional value that a lease extension will add the property Most leasehold owners in Heston will be able to extend under the legislation; however a conveyancing solicitor should be able to confirm if you qualify for an extension. In some cases you may not qualify. There are also strict deadlines and procedures to follow once the process is initiated and you will need to be guided by your conveyancer from beginning to end of the formalities.
Leasehold residencies in Heston with more than 100 years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Godiva Mortgages | 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
Irrespective of whether you are a tenant or a freeholder in Heston,the lease extension lawyers 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 Heston valuers.
Twenty four months ago Muhammad, came dangerously close to the 80-year threshold with the lease on his purpose- built apartment in Heston. Having purchased his flat 19 years previously, the lease term was of minimal significance. Thankfully, he noticed he would imminently be paying an inflated amount for Extending the lease. Muhammad arranged for a lease extension at the eleventh hour in July. Muhammad and the freeholder eventually agreed on sum of £5,000 . If he not met the deadline, the price would have become more exhorbitant by a minimum £1,050.
Dr R Flores owned a first floor flat in Heston in March 2006. We are asked if we could estimate the premium would likely be for a 90 year extension to my lease. Identical properties in Heston with 100 year plus lease were worth £290,000. The mid-range ground rent payable was £45 billed monthly. The lease expired on 21 October 2098. Taking into account 73 years as a residual term we approximated the premium to the landlord for the lease extension to be between £9,500 and £11,000 exclusive of expenses.
An example of a Lease Extension decision for a Heston residence 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 remaining number of years on the lease was 60.45 years.