Hampton Hill leases on residential properties are gradually losing value. if your lease has in the region of 90 years remaining, you should start thinking about a lease extension. 80 years is a significant number: when the unexpired term of a lease dips below this level then you begin paying an additional element called marriage value. Flat owners in Hampton Hill will mostly qualify for a lease extension; however a solicitor will check your eligibility. In some situations you may not be entitled. There are prescribed timetables and steps to comply with once the process is triggered so it’s wise to be guided by a conveyancer during the process.
Leasehold residencies in Hampton Hill with more than one hundred years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease value 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 maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Chelsea 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
Retaining our service gives you increased control over the value of your Hampton Hill leasehold, as your property will be more valuable and marketable in terms of lease length should you want to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Last year Michael, started to get near to the eighty-year threshold with the lease on his one bedroom flat in Hampton Hill. In buying his flat 18 years previously, the unexpired term was of little relevance. by good luck, he noticed he needed to take action soon on Extending the lease. Michael extended the lease just under the wire last June. Michael and the landlord who owned the flat above eventually agreed on the final figure of £6,000 . If he had missed the deadline, the price would have become more costly by at least £875.
In 2013 we were approached by Dr C Howard who, having completed a basement flat in Hampton Hill in May 2009. We are asked if we could shed any light on how much (roughly) premium could be for a ninety year extension to my lease. Comparable residencies in Hampton Hill with 100 year plus lease were valued about £242,600. The mid-range amount of ground rent was £45 collected monthly. The lease elapsed in 2093. Having 67 years remaining we approximated the premium to the landlord for the lease extension to be between £11,400 and £13,200 plus fees.
An example of a Lease Extension case for a Hampton Hill 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 affected 1 flat. The unexpired residue of the current lease was 60.45 years.