Owning a flat usually means owning a lease of the property, which has a finite term of years. This lease will usually be granted for a fixed period of time , usually 99 or 125 years, although we have witnessed longer and shorter terms in Isleworth. Inevitably, the term of lease remaining reduces over time. This is often overlooked and only raises itself as an issue when the property needs to be sold or refinanced. The shorter the lease the less it is worth and the more it will cost to procure a lease extension. Qualifying long lease owners in Isleworth have the right to extend the lease for a further 90 years under the 1993 Leasehold Reform Act. Do give careful deliberation before putting off your Isleworth lease extension. Holding off that expense now likely increases the price you will ultimately incur for a lease extension
It is generally accepted that a residential leasehold with more than 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the property will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| 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 |
| Yorkshire 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. |
Regardless of whether you are a tenant or a freeholder in Isleworth,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Isleworth valuers.
Two years ago Archie, came seriously close to the eighty-year mark with the lease on his purpose- built flat in Isleworth. In buying his property two decades ago, the length of the lease was of minimal bearing. Thankfully, it dawned on him that he needed to take steps soon on Extending the lease. Archie was able to extend his lease just under the wire last January. Archie and the freeholder eventually agreed on an amount of £5,000 . If he failed to meet the deadline, the amount would have gone up by at least £1,050.
Last month we were approach by Mr and Mrs. R Brown , who purchased a ground floor apartment in Isleworth in February 2001. The dilemma was if we could approximate the premium would likely be for a ninety year extension to my lease. Similar premises in Isleworth with an extended lease were worth £171,800. The average ground rent payable was £55 invoiced yearly. The lease expiry date was in 2076. Having 50 years as a residual term we approximated the premium to the landlord for the lease extension to be between £33,300 and £38,400 not including fees.
An example of a Lease Extension case for a Isleworth residence 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 affected 1 flat. The number of years remaining on the existing lease(s) was 60.45 years.