Ickenham leases on residential deteriorating in value. Where your lease has about ninety years remaining, you should start thinking about a lease extension. Eighty years is a significant number: when the unexpired term of a lease falls below this level then you begin paying an additional element called marriage value. Flat owners in Ickenham will usually be legally entitled to a lease extension; however It would be wise to check with a lawyer to confirm if you qualify. In some cases you may not qualify. There are prescribed timetables and steps to follow once the process has started so it’s prudent to be guided by a lawyer during the process.
Leasehold residencies in Ickenham with over 100 years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and estate charges warrant it.
| 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. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Chelsea 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
Lease extensions in Ickenham can be a difficult process. We recommend you obtain guidance from a conveyancer and surveyor well versed in the legislation and lease extension process.
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 a wealth of experience procuring Ickenham lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last October Milo, came critically close to the eighty-year threshold with the lease on his ground floor apartment in Ickenham. In buying his flat 18 years ago, the unexpired term was of no bearing. Fortunately, he noticed he would soon be paying an escalated premium for a lease extension. Milo extended the lease at the eleventh hour last July. Milo and the landlord eventually settled on an amount of £6,000 . If he not met the deadline, the premium would have increased by a minimum £950.
In 2011 we were approached by Ms D James who, having moved into a first floor flat in Ickenham in January 2007. We are asked if we could approximate the compensation to the landlord would be to extend the lease by an additional years. Identical properties in Ickenham with a long lease were worth £208,600. The average amount of ground rent was £60 invoiced every twelve months. The lease ran out in 2082. Having 57 years outstanding we estimated the premium to the freeholder to extend the lease to be within £30,400 and £35,200 not including costs.
An example of a Lease Extension case for a Ickenham flat is Flat 72 Queens Walk in January 2013. The Tribunals calculated the premium payable to be £22,090. This case related to 1 flat. The unexpired term as at the valuation date was 53.26 years.