With a domestic leasehold property in Hanwell, you are actually buying a right to reside in a property for a set period of time. In recent years flat leases are usually granted for 99 years or 125. Even though this may appear like a long period of time, you may think about a lease extension sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly notably once there are less than eighty years left. Residents in Hanwell with a lease drawing near to 81 years left should seriously consider extending it as soon as possible. When a lease has fewer than eighty years remaining, under the current statute the landlord can calculate and levy a greater amount, based on a technical computation, strangely termed as “marriage value” which is payable.
It is generally considered that a property with over one hundred years remaining is worth approximately the same as a freehold. Where an additional ninety years added to any lease with more than 45 years left, the property will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | 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. |
Retaining our service will provide you better control over the value of your Hanwell leasehold, as your property will be more valuable and marketable in relation to the lease length should you wish to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Off the back of protracted negotiations with the landlord of her garden flat in Hanwell, Alexandra started the lease extension process just as the lease was approaching the all-important 80-year mark. The transaction completed in November 2015. The landlord’s fees were restricted to less than four hundred GBP.
Last February we were called by Dr F Bertrand , who took over the lease of a ground floor flat in Hanwell in June 2000. We are asked if we could shed any light on how much (roughly) compensation to the landlord would likely be to prolong the lease by 90 years. Identical premises in Hanwell with an extended lease were in the region of £191,000. The average amount of ground rent was £65 billed quarterly. The lease terminated on 10 May 2083. Given that there were 58 years remaining we approximated the compensation to the freeholder to extend the lease to be within £23,800 and £27,400 exclusive of professional charges.
An example of a Freehold Enfranchisement case for a Hanwell premises is 6 Jessamine Road in August 2013. The Tribunals valuation (as annexed to the decision) calculated the amount payable as £18,355 for the freehold reversion This case affected 2 flats. The unexpired term was 72.39 years.