It’s an underpublicised truth that a Isleworth residential lease is a deteriorating asset. As the lease term reduces so does the value of the property. The extent of this is not fully appreciated in the first few years due to the deflation being disguised by increases in the Isleworth property market.Once your lease gets to 85ish years, you should start considering a lease extension. If lease term dips below 80 years, you will then be required to pay 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 additional value that a lease extension will add the property Most leasehold owners in Isleworth will be able to extend under the legislation; however a conveyancing solicitor should be able to clarify if you qualify for an extension. In some cases you may not be entitled. There are also strict timetables and procedures to follow once the process has commenced and you will need to be guided by your lawyer for the duration of the process.
It is conventional wisdom that a residential leasehold with over one hundred years unexpired lease term is worth roughly the same as a freehold. Where an further 90 years added to any lease with more than 30 years left, the residence will be worth the same as a freehold for decades to come.
| 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. |
| 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. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Engaging our service gives you better control over the value of your Isleworth leasehold, as your property will be more valuable and marketable in relation to the lease length should you wish to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Last year Max, came critically near to the eighty-year threshold with the lease on his two bedroom apartment in Isleworth. Having purchased his property two decades ago, the length of the lease was of minimal importance. by good luck, he noticed he needed to take steps soon on a lease extension. Max extended the lease just ahead of time in March. Max and the landlord in the end agreed on a premium of £5,500 . If the lease had descended lower than 80 years, the figure would have increased by at least £1,100.
In 2012 we were contacted by Mr and Mrs. U Murphy who, having took over the lease of a one bedroom apartment in Isleworth in July 2005. The dilemma was if we could approximate the premium could be for a 90 year lease extension. Similar homes in Isleworth with a long lease were valued around £210,000. The mid-range amount of ground rent was £50 collected quarterly. The lease came to a finish on 19 February 2105. Given that there were 80 years outstanding we approximated the premium to the landlord to extend the lease to be within £8,600 and £9,800 exclusive of fees.
An example of a Lease Extension case for a Isleworth premises 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 remaining number of years on the lease was 60.45 years.