As the length of the unexpired term of a Hounslow residential lease decreases so does its value and therefore the value of your property. Where the residual term has, in excess of 125 years remaining then this decrease may be of little impact that being said there will become a stage when a lease has under than eighty years remaining as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the primary rational as to why you should consider extending sooner than later. Most flat owners in Hounslow will meet the qualifying criteria; that being said a lawyer can advise if you qualify for a lease extension. In certain situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
Leasehold premises in Hounslow with in excess of 100 years remaining on the lease are often 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 to be gained by purchasing the reversionary interest unless savings on ground rent and estate 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date 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 |
Retaining our service will provide you enhanced control over the value of your Hounslow leasehold, as your property will be more valuable and saleable in relation to the lease length should you want to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Blake was the the leasehold owner of a studio apartment in Hounslow being marketed with a lease of fraction over 61 years unexpired. Blake informally contacted his landlord a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to give an extension on non-statutory terms taking the lease to 125 years subject to a new rent initially set at £150 per annum and doubled every twenty five years thereafter. No ground rent would be due on a lease extension were Blake to exercise his statutory right. Blake procured expert advice and secured an acceptable deal without going to tribunal and ending up with a market value flat.
Last Spring we were contacted by Mr and Mrs. V Walker , who moved into a recently refurbished apartment in Hounslow in March 2012. The question was if we could shed any light on how much (approximately) premium would likely be for a 90 year lease extension. Identical premises in Hounslow with an extended lease were valued around £270,000. The average amount of ground rent was £55 billed yearly. The lease elapsed on 26 May 2099. Taking into account 74 years remaining we estimated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 plus costs.
An example of a Lease Extension decision for a Hounslow flat 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.