When it comes to long leasehold property in Isleworth, you are in fact renting it for a certain period of time. In recent years flat leases typically tend to be for 99 years or 125. Many leasehold owners are unconcerned as this seems like a long period of time, you may think about a lease extension sooner rather than later. The general rule is that the shorter the number of years is the cost of extending the lease becomes disproportionately greater particularly once there are less than 80 years remaining. Leasehold owners in Isleworth with a lease drawing near to 81 years unexpired should seriously think of extending it without delay. When a lease has under 80 years outstanding, under the relevant legislation the freeholder can calculate and charge a greater premium, assessed on a technical computation, strangely termed as “marriage value” which is payable.
Leasehold residencies in Isleworth with more than 100 years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Coventry Building Society | 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Yorkshire 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. |
Regardless of whether you are a tenant or a landlord in Isleworth,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Isleworth valuers.
In recent months William, started to get close to the eighty-year mark with the lease on his leasehold apartment in Isleworth. In buying his home two decades ago, the length of the lease was of little concern. Luckily, he realised he would imminently be paying way over the odds for Extending the lease. William arranged for a lease extension just under the wire last June. William and the landlord subsequently settled on sum of £6,000 . If he failed to meet the deadline, the amount would have become more exhorbitant by at least £975.
Last year we were e-mailed by Ms J Anderson , who was assigned a lease of a newly refurbished flat in Isleworth in November 2010. We are asked if we could approximate the price could be for a 90 year extension to my lease. Similar residencies in Isleworth with 100 year plus lease were valued around £243,000. The mid-range ground rent payable was £65 collected every twelve months. The lease terminated on 11 March 2088. Considering the 63 years unexpired we estimated the premium to the landlord for the lease extension to be within £20,000 and £23,000 plus professional charges.
An example of a Lease Extension matter before the tribunal for a Isleworth 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 remaining number of years on the lease was 60.45 years.