The re-sale value of a leasehold property in Hampden Pk is impacted by how many years the lease has left to run. If it is near to or less than 80 years you should anticipate problems on re-sale, so it is advisable to arrange for the lease to be extended prior to purchasing. It is preferable to commence the lease extension process when a lease still has 82 years to run so that formalities can be finalised prior to the 80 year mark. Current legislation enables Hampden Pk qualifying lessees to acquire a lease extension of ninety years in addition to the remaining length of the lease at a peppercorn rent (that is, rent free). The intention of the valuation is to determine the amount payable by the lessee to the freeholder for the acquisition of the lease extension.
Leasehold premises in Hampden Pk with over 100 years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and maintenance charges justify 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. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
Engaging our service will provide you better control over the value of your Hampden Pk leasehold, as your property will be more valuable and marketable in respect of lease length should you want to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
In 2014 Elijah, started to get close to the eighty-year threshold with the lease on his leasehold flat in Hampden Pk. In buying his flat two decades ago, the length of the lease was of minimal importance. As luck would have it, he realised he needed to take action soon on Extending the lease. Elijah arranged for a lease extension at the eleventh hour in April. Elijah and the landlord ultimately agreed on an amount of £5,000 . If the lease had dipped to less than eighty years, the price would have gone up by at least £1,150.
In 2013 we were contacted by Mr and Mrs. L Clark who, having completed a studio flat in Hampden Pk in April 2005. We are asked if we could estimate the compensation to the landlord could be to extend the lease by 90 years. Comparable residencies in Hampden Pk with a long lease were in the region of £205,000. The mid-range ground rent payable was £50 invoiced yearly. The lease lapsed on 13 April 2104. Having 79 years outstanding we estimated the compensation to the landlord to extend the lease to be between £8,600 and £9,800 not including legals.
Dr Alex Thomas purchased a garden flat in Hampden Pk in July 1998. The question was if we could estimate the premium would be for a ninety year lease extension. Identical homes in Hampden Pk with an extended lease were valued about £275,000. The average amount of ground rent was £65 billed monthly. The lease ended on 27 March 2093. Taking into account 68 years as a residual term we approximated the compensation to the freeholder for the lease extension to be within £12,400 and £14,200 exclusive of costs.