It’s an underpublicised certainty that a Hanworth residential lease is a deteriorating asset. The lease value drops in proportion to its lease length. The extent of this is not fully appreciated in the first few years due to the deflation being disguised by increases in the Hanworth property market.Once your lease gets to 85ish years, you need to start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease falls lower than eighty years - otherwise a higher premium will be payable. Most flat owners in Hanworth will be able to extend under the legislation; however a lawyer should be able to confirm if you qualify for an extension. In some cases you may not be entitled. There are also strict deadlines and procedures to follow once the process has commenced and you will need to be guided by your conveyancing solicitor throughout the process.
It is generally accepted that a property with in excess of 100 years unexpired lease term is worth approximately the same as a freehold. Where an additional ninety years added to any lease with more than 45 years left, the residence 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Regardless of whether you are a tenant or a landlord in Hanworth,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Hanworth valuers.
After unsuccessful correspondence with the landlord of her studio flat in Hanworth, Isabel started the lease extension process as the eighty year deadline was quickly coming. The transaction completed in April 2007. The landlord’s charges were kept to an absolute minimum.
In 2010 we were phoned by Mr Harvey Nelson who, having took over the lease of a ground floor flat in Hanworth in February 2004. We are asked if we could estimate the price could be for a ninety year lease extension. Comparable flats in Hanworth with a long lease were worth £200,000. The average amount of ground rent was £50 billed yearly. The lease expiry date was in 2104. Taking into account 78 years remaining we calculated the compensation to the landlord for the lease extension to be between £8,600 and £9,800 exclusive of costs.
An example of a Lease Extension case 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 affected 1 flat. The unexpired lease term was 82.93 years.