Hampden Pk leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease becomes more expensive. It is the case that most Hampden Pk tenants have the right to extend their lease by an additional ninety years under the 1993 Leasehold Reform Act. If you are a leasehold owner in Hampden Pk you would be well advised to investigate if your lease has between seventy and ninety years remaining. There are compelling reasons why a Hampden Pk leaseholder with a lease having around eighty years left should take action to ensure that a lease extension is effected without delay
Leasehold premises in Hampden Pk with in excess of 100 years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and service charges merit 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; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
Engaging our service will provide you increased control over the value of your Hampden Pk leasehold, as your property will be more valuable and saleable in relation to the lease length should you decide to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Oliver owned a 2 bedroom apartment in Hampden Pk being marketed with a lease of a few days over 59 years remaining. Oliver informally contacted his landlord a well known local-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to an increased rent to £50 annually. No ground rent would be due on a lease extension were Oliver to exercise his statutory right. Oliver procured expert legal guidance and secured an acceptable resolution informally and readily saleable.
Last Winter we were e-mailed by Dr N Davies , who purchased a first floor flat in Hampden Pk in November 2010. The dilemma was if we could shed any light on how much (approximately) price could be for a ninety year extension to my lease. Identical residencies in Hampden Pk with a long lease were worth £285,000. The average ground rent payable was £45 billed quarterly. The lease concluded in 2096. Considering the 71 years outstanding we estimated the compensation to the freeholder to extend the lease to be between £12,400 and £14,200 plus fees.
In 2011 we were approached by Dr John Vincent who, having was assigned a lease of a studio apartment in Hampden Pk in June 2005. The question was if we could estimate the premium would be for a ninety year extension to my lease. Comparable properties in Hampden Pk with 100 year plus lease were valued about £230,800. The average amount of ground rent was £60 invoiced every twelve months. The lease ended in 2085. Considering the 60 years as a residual term we estimated the compensation to the freeholder for the lease extension to be between £24,700 and £28,600 exclusive of costs.