There is no doubt about it a leasehold property in Twickenham is a wasting asset as a result of the shortening lease. Where the residual term has, beyond 99 years remaining then this decrease may be fractional however there will become a stage when a lease has less than 80 years remaining as part of the premium you will incur is what is known as a marriage value. This could increase sharply the cost. It is the primary reason why you should extend the lease sooner as opposed to later. The majority of flat owners in Twickenham will qualify for this right; nevertheless a conveyancer will be able to confirm if you qualify for a lease extension. In limited situations you may not qualify, the most frequent reason being that you have owned the property for under two years.
Leasehold properties in Twickenham with in excess of 100 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 premises. In such situations there is often little upside in buying the freehold unless savings on ground rent and estate charges merit it.
| 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| 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. |
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 lawyer we work with provide it.
Trailing lengthy discussions with the freeholder of her purpose-built flat in Twickenham, Madeleine commenced the lease extension process as the 80 year deadline was swiftly coming. The transaction was finalised in October 2012. The landlord’s fees were kept to an absolute minimum.
Last month we were called by Ms H Murphy , who acquired a ground floor apartment in Twickenham in October 1999. The question was if we could approximate the price would be to extend the lease by a further 90 years. Comparative flats in Twickenham with 100 year plus lease were valued about £290,000. The mid-range amount of ground rent was £45 billed yearly. The lease expiry date was in 2097. Having 72 years left we estimated the premium to the landlord for the lease extension to be between £12,400 and £14,200 plus expenses.
An example of a Lease Extension case for a Twickenham 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.