Unfortunately that a Hanworth residential lease is a deteriorating asset. The lease value reduces in proportion to its lease length. The extent of this is taken for granted in the early years due to the loss of value being disguised by increases in the Hanworth property prices.Where your lease has approximately 90 years left, you need to start thinking about a lease extension. If the number of years remaining dips below 80 years, you will end up paying 50% of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add the property Most flat owners in Hanworth will be able to extend under the legislation; however a lawyer will be able to confirm whether you are eligibility. In some cases you may not qualify. There are also strict timeframes and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancer from beginning to end of the formalities.
Leasehold residencies in Hanworth with over 100 years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The conveyancing solicitors that we work with procure 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 lawyer we work with provide it.
During the course of the last few months Muhammad, started to get near to the eighty-year mark with the lease on his basement flat in Hanworth. In buying his flat 19 years previously, the lease term was of no concern. As luck would have it, he noticed he needed to take action soon on Extending the lease. Muhammad arranged for a lease extension just under the wire last March. Muhammad and the landlord subsequently settled on a premium of £5,500 . If he had missed the deadline, the figure would have increased by at least £925.
Mr and Mrs. N González owned a basement apartment in Hanworth in October 2005. The question was if we could shed any light on how much (roughly) compensation to the landlord could be to extend the lease by 90 years. Similar homes in Hanworth with an extended lease were valued around £166,800. The average amount of ground rent was £50 collected every twelve months. The lease ended on 13 May 2075. Considering the 50 years unexpired we approximated the compensation to the landlord for the lease extension to be between £32,300 and £37,400 plus costs.
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 lease term was 82.93 years.