Unfortunately that a East Twickenham residential lease is a deteriorating asset. As the lease term diminishes so does the value of the property. The extent of this is not fully appreciated in the early years due to the reduction being disguised by increases in the East Twickenham property market.Once your lease nears 85ish years, you should start thinking about a lease extension. If lease term falls under eighty years, you will then be required to pay 50% of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add the property Most leasehold owners in East Twickenham will be able to extend under the legislation; however a lawyer will be able to clarify if you qualify for an extension. In some cases you may not qualify. There are also strict deadlines and procedures to follow once the process has commenced and you will need to be guided by your conveyancer for the duration of the formalities.
It is conventional wisdom that a property with in excess of 100 years remaining is worth approximately 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 decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| 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. |
The conveyancers that we work with procure East Twickenham 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 lawyer we work with provide it.
Last October Hunter, started to get near to the eighty-year mark with the lease on his first floor apartment in East Twickenham. Having bought his home two decades ago, the lease term was of no concern. Thankfully, he noticed he would imminently be paying way over the odds for Extending the lease. Hunter extended the lease just in the nick of time in January. Hunter and the freeholder via the management company subsequently settled on the final figure of £6,000 . If the lease had descended lower than eighty years, the figure would have become more costly by a minimum £1,100.
Dr Noah François completed a one bedroom flat in East Twickenham in May 1996. We are asked if we could approximate the compensation to the landlord would be for a ninety year extension to my lease. Identical premises in East Twickenham with 100 year plus lease were valued about £265,200. The mid-range amount of ground rent was £65 invoiced quarterly. The lease lapsed in 2092. Having 66 years unexpired we estimated the compensation to the freeholder to extend the lease to be within £15,200 and £17,600 plus legals.
An example of a Lease Extension decision for a East Twickenham 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 affected 1 flat. The unexpired lease term was 60.45 years.