As the length of the unexpired term of a Hanworth residential lease decreases so does its value and therefore the value of your property. Where the residual term has, more than 99 years remaining then this decrease may be of little impact that being said there will become a point in time when a lease has under than eighty years unexpired as part of the premium you will incur is what is termed as a marriage value. This could increase sharply the cost. It is the primary rational as to why you should consider extending without delay. Many flat owners in Hanworth will qualify for this right; that being said a conveyancer should be able to advise if you qualify to extend your lease. In certain situations you may not qualify, the most common reason being that you have owned the property for less than two years.
It is generally accepted that a property with over one hundred years remaining is worth approximately the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the property will be worth the same as a freehold for many years in the future.
| 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. |
| 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. |
| 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 gives you better control over the value of your Hanworth leasehold, as your property will be more valuable and saleable in terms of lease length should you decide to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
14 months ago Hunter, came very close to the eighty-year mark with the lease on his garden apartment in Hanworth. Having bought his property 18 years ago, the lease term was of little significance. by good luck, he noticed he would imminently be paying way over the odds for a lease extension. Hunter was able to extend his lease just in the nick of time last September. Hunter and the freeholder ultimately agreed on an amount of £5,500 . If he had missed the deadline, the sum would have increased by a minimum £925.
Last year we were approach by Mr and Mrs. E Young , who completed a one bedroom apartment in Hanworth in June 2006. We are asked if we could approximate the compensation to the landlord would likely be to prolong the lease by an additional years. Identical residencies in Hanworth with 100 year plus lease were in the region of £184,000. The average amount of ground rent was £55 invoiced per annum. The lease finished in 2078. Given that there were 53 years as a residual term we calculated the premium to the landlord to extend the lease to be within £28,500 and £33,000 exclusive of fees.
An example of a Lease Extension decision for a Hanworth flat is 147 Redford Close in June 2012. The Tribunal determined the lease extension premium to be at £4,200 This case affected 1 flat. The unexpired residue of the current lease was 82.93 years.