Chances are that if you own a flat in Twickenham you actually own a long leasehold interest over your property
Leasehold properties in Twickenham with more than one hundred years left 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 property. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and service 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; |
| 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. |
| Godiva Mortgages | 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. |
The conveyancing solicitors that we work with undertake Twickenham 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 conveyancer we work with provide it.
During the course of the last few months Austin, started to get close to the 80-year mark with the lease on his one bedroom flat in Twickenham. Having bought his property two decades ago, the lease term was of no bearing. by good luck, he noticed he needed to take action soon on Extending the lease. Austin extended the lease just under the wire in June. Austin and the landlord who owned the flat above subsequently settled on a premium of £5,500 . If the lease had dropped to less than 80 years, the premium would have gone up by a minimum £1,150.
In 2010 we were approached by Mr Ethan Wilson who, having owned a one bedroom flat in Twickenham in February 1997. The question was if we could shed any light on how much (approximately) compensation to the landlord would likely be to extend the lease by an additional years. Similar premises in Twickenham with 100 year plus lease were in the region of £225,800. The mid-range amount of ground rent was £60 collected per annum. The lease expiry date was on 19 September 2085. Having 60 years as a residual term we approximated the compensation to the landlord to extend the lease to be between £23,800 and £27,400 exclusive of professional charges.
An example of a Lease Extension matter before the tribunal for a Twickenham flat 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 was in relation to 1 flat. The unexpired term was 60.45 years.