Hounslow residential property held on a long lease is a wasting asset as the leaseholder only owns the property for a period of years.
It is conventional wisdom that a residential leasehold with more than 100 years remaining is worth roughly the same as a freehold. Where an further 90 years added to any lease with more than 45 years remaining, the residence will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Hounslow can be a difficult process. We recommend you secure guidance from a conveyancing solicitor and surveyor 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 Hounslow lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last Christmas Jude, came perilously near to the 80-year mark with the lease on his studio apartment in Hounslow. In buying his flat 18 years previously, the unexpired term was of no significance. As luck would have it, he recognised he would imminently be paying way over the odds for Extending the lease. Jude extended the lease just under the wire last July. Jude and the landlord eventually agreed on an amount of £5,500 . If he not met the deadline, the sum would have escalated by at least £1,125.
Last month we were contacted by Dr Connor Brown , who moved into a garden apartment in Hounslow in April 1996. We are asked if we could approximate the compensation to the landlord would be to prolong the lease by a further 90 years. Identical homes in Hounslow with an extended lease were in the region of £280,000. The average amount of ground rent was £55 invoiced per annum. The lease ran out in 2103. Having 78 years outstanding we estimated the compensation to the landlord for the lease extension to be between £13,300 and £15,400 not including fees.
An example of a Lease Extension case for a Hounslow premises 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 related to 1 flat. The unexpired term as at the valuation date was 60.45 years.