Hanworth leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease becomes more expensive. The majority of owners of residential leasehold property in Hanworth enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Hanworth you should investigate if your lease has between seventy and ninety years remaining. There are good reasons why a Hanworth flat owner with a lease having around eighty years left should take steps to ensure that a lease extension is put in place without delay
Leasehold residencies in Hanworth with over one hundred 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 property. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and service charges merit it.
|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.|
|Halifax|| 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
|Royal Bank of Scotland||Mortgage term plus 30 years. For a Lifetime Mortgage, the term must be no less than 150 years minus the age of the Borrower.|
|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 Hanworth,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Hanworth valuers.
Off the back of protracted negotiations with the landlord of her studio flat in Hanworth, Kayleigh started the lease extension process as the 80 year mark was fast nearing. The legal work was finalised in July 2015. The landlord’s costs were restricted to below 650 GBP.
Last Summer we were approach by Mr and Mrs. W Flores , who was assigned a lease of a one bedroom flat in Hanworth in August 2001. The question was if we could approximate the premium would likely be to prolong the lease by 90 years. Comparable homes in Hanworth with 100 year plus lease were valued about £300,000. The mid-range ground rent payable was £50 invoiced monthly. The lease finished on 10 February 2095. Having 76 years remaining we calculated the premium to the landlord for the lease extension to be between £8,600 and £9,800 exclusive of expenses.
An example of a Lease Extension decision for a Hanworth residence is 147 Redford Close in June 2012. The Tribunal determined the lease extension premium to be at £4,200 This case was in relation to 1 flat. The unexpired term was 82.93 years.