Heston leases on residential deteriorating in value. if your lease has approximately 90 years unexpired, you should start thinking about a lease extension. An important point to note is that it is financially advisable for a lease extension to take place before the term of the existing lease falls below 80 years - otherwise a higher premium will be payable. Leasehold owners in Heston will usually be legally entitled to a lease extension; however it’s a good idea to check with a lawyer to check if you qualify. In some cases you may not be entitled. There are prescribed timetables and formalities to comply with once the process has commenced so it’s sensible to be guided by a lawyer during the process.
It is conventional wisdom that a residential leasehold with more than one hundred years remaining is worth roughly the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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. |
Using our service gives you increased control over the value of your Heston leasehold, as your property will be more valuable and saleable in terms of lease length should you decide to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Following lengthy correspondence with the freeholder of her studio flat in Heston, Caitlin commenced the lease extension process as the 80 year deadline was quickly approaching. The transaction was finalised in April 2014. The landlord’s costs were restricted to under 700 GBP.
Last month we were contacted by Mr and Mrs. O Harris , who completed a basement apartment in Heston in March 1997. We are asked if we could estimate the compensation to the landlord would likely be to prolong the lease by ninety years. Comparative flats in Heston with 100 year plus lease were valued around £208,600. The average ground rent payable was £60 billed yearly. The lease lapsed in 2082. Having 57 years unexpired we approximated the premium to the landlord to extend the lease to be within £30,400 and £35,200 plus legals.
An example of a Lease Extension matter before the tribunal 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 was in relation to 1 flat. The unexpired residue of the current lease was 60.45 years.