When it comes to residential leasehold premises in Hanworth, you effectively rent it for a certain amount of time. Modern flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you may think about a lease extension sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease gets disproportionately greater particularly once there are fewer than eighty years left. Leasehold owners in Hanworth with a lease nearing 81 years left should seriously consider extending it without delay. When a lease has under 80 years outstanding, under the relevant statute the freeholder can calculate and charge a larger premium, assessed on a technical computation, strangely termed as “marriage value” which is due.
Leasehold properties in Hanworth with over one hundred years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and service charges warrant 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The conveyancing solicitors that we work with undertake Hanworth 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.
Subsequent to protracted correspondence with the freeholder of her purpose-built apartment in Hanworth, Freya initiated the lease extension process as the 80 year mark was fast nearing. The legal work was finalised in July 2006. The landlord’s charges were kept to an absolute minimum.
Mr and Mrs. U Hall acquired a one bedroom apartment in Hanworth in March 2003. The question was if we could shed any light on how much (approximately) premium would be to extend the lease by a further 90 years. Identical premises in Hanworth with 100 year plus lease were worth £174,200. The average amount of ground rent was £55 invoiced per annum. The lease elapsed in 2077. Considering the 51 years as a residual term we estimated the premium to the landlord to extend the lease to be within £31,400 and £36,200 not including expenses.
An example of a Lease Extension matter before the tribunal for a Hanworth property is 147 Redford Close in June 2012. The Tribunal determined the lease extension premium to be at £4,200 This case related to 1 flat. The remaining number of years on the lease was 82.93 years.