There is no doubt about it a leasehold property in Hanworth is a wasting asset as a result of the shortening lease. Where the residual term has, over 125 years remaining then this decrease may be fractional that being said there will become a point in time when a lease has fewer than eighty years left as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the primary rational as to why you should extend the lease without delay. The majority of flat owners in Hanworth will meet the qualifying criteria; nevertheless a lawyer will be able to advise whether you are eligible to extend your lease. In limited situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
It is conventional wisdom that a property with over 100 years unexpired lease term is worth roughly the same as a freehold. Where an additional 90 years added to all but the shortest lease, the premises will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | 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 |
| 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. |
The lawyers that we work with handle 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.
Two years ago Nathaniel, came seriously near to the eighty-year threshold with the lease on his leasehold flat in Hanworth. Having bought his flat 18 years previously, the length of the lease was of little significance. Luckily, he recognised he would imminently be paying an inflated amount for a lease extension. Nathaniel extended the lease at the eleventh hour last September. Nathaniel and the landlord who owned the flat above subsequently agreed on an amount of £5,000 . If he not met the deadline, the figure would have increased by a minimum £900.
In 2014 we were e-mailed by Mr and Mrs. R Reed who, having took over the lease of a garden apartment in Hanworth in November 2012. We are asked if we could approximate the premium could be for a 90 year lease extension. Similar properties in Hanworth with an extended lease were in the region of £290,000. The mid-range amount of ground rent was £45 billed per annum. The lease terminated on 9 January 2098. Having 73 years outstanding we calculated the compensation to the landlord for the lease extension to be within £9,500 and £11,000 exclusive of costs.
An example of a Lease Extension case 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 unexpired term as at the valuation date was 82.93 years.