Hounslow leases on residential properties are gradually losing value. if your lease has about ninety years remaining, you should start considering the need for a lease extension. If lease term dips under eighty years, you will then have to pay half of the property's 'marriage value' in addition to the standard cost of the lease extension to your landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Leasehold owners in Hounslow will usually be legally entitled to a lease extension; however it’s a good idea to check with a lawyer to confirm if you qualify. In some circumstances you may not qualify. There are also strict deadlines and procedures to follow once the process has started so it’s prudent to be guided by a conveyancing solicitor during the process.
Leasehold residencies in Hounslow with more than one hundred years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
The conveyancers that we work with undertake Hounslow lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
Henry owned a 2 bedroom apartment in Hounslow being marketed with a lease of just over 61 years unexpired. Henry informally contacted his landlord a well known Bristol-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years on the basis of a rise in the rent to £200 yearly. Ordinarily, ground rent would not be due on a lease extension were Henry to invoke his statutory right. Henry procured expert legal guidance and secured satisfactory deal without going to tribunal and ending up with a market value flat.
In 2009 we were e-mailed by Ms I Morris who, having purchased a first floor flat in Hounslow in January 1998. The question was if we could estimate the premium would be for a ninety year extension to my lease. Identical residencies in Hounslow with an extended lease were worth £173,800. The average ground rent payable was £60 collected every twelve months. The lease expired on 9 October 2080. Having 55 years left we calculated the premium to the freeholder for the lease extension to be within £31,400 and £36,200 plus expenses.
An example of a Lease Extension matter before the tribunal for a Hounslow 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 unexpired lease term was 60.45 years.