Isleworth leases on domestic properties are gradually losing value. if your lease has about ninety years left, you should start thinking about a lease extension. An important point to note is that it is desirable for the lease extension to be in place before the term of the current lease falls under 80 years - otherwise a higher premium will be due. Leasehold owners in Isleworth will usually be legally entitled to a lease extension; however a solicitor will confirm your eligibility. In certain cases you may not qualify. There are also strict timetables and procedures to comply with once the process is triggered so it’s wise to be guided by a conveyancer during the process.
Leasehold properties in Isleworth with in excess of one hundred years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little to be gained by purchasing 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. |
| 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. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Retaining our service will provide you increased control over the value of your Isleworth leasehold, as your property will be more valuable and marketable in respect of lease length should you decide to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Rory was the the leasehold proprietor of a 2 bedroom apartment in Isleworth being sold with a lease of a few days over 61 years remaining. Rory on an informal basis approached his landlord being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to grant an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £200 yearly. No ground rent would be due on a lease extension were Rory to exercise his statutory right. Rory obtained expert advice and secured an acceptable resolution without resorting to tribunal and ending up with a market value flat.
Mr Tyler Jackson acquired a garden flat in Isleworth in August 2009. We are asked if we could estimate the premium would be for a ninety year lease extension. Comparative residencies in Isleworth with 100 year plus lease were valued around £260,200. The average amount of ground rent was £65 billed yearly. The lease expired in 2092. Taking into account 66 years as a residual term we estimated the compensation to the landlord to extend the lease to be between £14,300 and £16,400 exclusive of professional charges.
An example of a Lease Extension matter before the tribunal for a Isleworth property is Ground Floor Flat 91 Bath Road in May 2009. in a case where the freeholder could not be traced, the Brentford County Court ordered that the Lease be surrendered in return for the grant of a new lease of the Premises at a premium determined by the Leasehold Valuation Tribunal. The tribunal concluded that the price payable by the Applicant for the new lease of the premises be £15,900 This case related to 1 flat. The unexpired residue of the current lease was 60.45 years.