With a domestic leasehold property in Hanworth, you are actually purchasing a right to live in a property for a prescribed time frame. In recent years flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you may think about extending the lease sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease gets disproportionately greater particularly when there are fewer than 80 years remaining. Leasehold owners in Hanworth with a lease nearing 81 years left should seriously consider extending it without delay. When the lease term has under eighty years left, under the current legislation the freeholder can calculate and levy a greater amount, assessed on a technical multiplication, known as “marriage value” which is payable.
It is conventional wisdom that a residential leasehold with in excess of 100 years unexpired lease term is worth approximately the same as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Hanworth can be a difficult process. We recommend you get guidance from a conveyancer and valuer with experience in lease extensions.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge dealing with Hanworth lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last Autumn Dexter, started to get close to the 80-year threshold with the lease on his garden flat in Hanworth. In buying his home twenty years previously, the unexpired term was of little importance. Luckily, he noticed he needed to take action soon on Extending the lease. Dexter extended the lease just under the wire last March. Dexter and the landlord in the end settled on an amount of £6,000 . If the lease had slid to less than eighty years, the premium would have become more costly by at least £1,150.
In 2011 we were e-mailed by Dr I Rivera who, having acquired a basement flat in Hanworth in April 2003. We are asked if we could shed any light on how much (roughly) price could be to prolong the lease by a further 90 years. Similar flats in Hanworth with 100 year plus lease were worth £275,000. The average amount of ground rent was £65 collected yearly. The lease end date was on 1 November 2094. Considering the 68 years unexpired we approximated the compensation to the freeholder for the lease extension to be within £13,300 and £15,400 plus legals.
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 was in relation to 1 flat. The number of years remaining on the existing lease(s) was 82.93 years.