Hampton Wick 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. Most owners of residential leasehold property in Hampton Wick enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Hampton Wick you must see if your lease has between seventy and ninety years left. In particular once the remaining lease term slips under eighty years, the cost of any lease extension sharply increases as part of the premium you will incur is what is known as a marriage value
Leasehold residencies in Hampton Wick with over one hundred years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| 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; |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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. |
Retaining our service gives you increased control over the value of your Hampton Wick leasehold, as your property will be more valuable and saleable in relation to the lease length should you want to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
In 2014 Kai, came critically near to the eighty-year threshold with the lease on his first floor flat in Hampton Wick. In buying his property 19 years previously, the lease term was of no importance. Luckily, it dawned on him that he needed to take action soon on a lease extension. Kai arranged for a lease extension just under the wire in September. Kai and the landlord who owned the flat above subsequently agreed on an amount of £5,000 . If the lease had slid to less than eighty years, the amount would have become more exhorbitant by a minimum £1,100.
In 2011 we were phoned by Mr and Mrs. L Moreau who, having took over the lease of a purpose-built flat in Hampton Wick in June 2005. We are asked if we could approximate the compensation to the landlord would likely be to prolong the lease by an additional years. Comparable homes in Hampton Wick with an extended lease were valued around £257,800. The mid-range ground rent payable was £65 invoiced quarterly. The lease concluded on 15 March 2090. Having 65 years outstanding we calculated the premium to the landlord to extend the lease to be between £17,100 and £19,800 exclusive of costs.
An example of a Lease Extension case for a Hampton Wick premises is Flat D 15 Claremont Gardens in September 2013. TheTribunal determined in accordance with section48 and Schedule13 of the Leasehold Reform,Housing and Urban Development Act 1993 that the premium for the extended lease should be fourteen thousand one hundred and eighty seven pounds (£14,187.00) This case related to 1 flat.