Hampton 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 the lease becomes more expensive. The majority of owners of residential leasehold property in Hampton enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Hampton you must check if your lease has between seventy and ninety years remaining. There are good reasons why a Hampton leaseholder with a lease having around 80 years remaining should take action to make sure that a lease extension is actioned without delay
It is conventional wisdom that a property with more than 100 years unexpired lease term is worth approximately the same as a freehold. Where an additional 90 years added to any lease with more than 30 years unexpired, the premises will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Using our service will provide you increased control over the value of your Hampton leasehold, as your property will be more valuable and saleable in terms of lease length should you decide to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Following lengthy correspondence with the freeholder of her one bedroom apartment in Hampton, Abbie initiated the lease extension process just as her lease was coming close to the critical 80-year mark. The lease extension was concluded in June 2014. The landlord’s fees were kept to an absolute minimum.
In 2014 we were e-mailed by Dr H Leroy who, having owned a first floor flat in Hampton in February 2007. The question was if we could estimate the premium could be for a ninety year extension to my lease. Identical homes in Hampton with 100 year plus lease were in the region of £176,200. The average ground rent payable was £65 billed yearly. The lease lapsed on 20 October 2081. Given that there were 56 years as a residual term we approximated the compensation to the landlord to extend the lease to be between £29,500 and £34,000 exclusive of expenses.
An example of a Lease Extension matter before the tribunal for a Hampton residence is 147 Redford Close in June 2012. The Tribunal determined the lease extension premium to be at £4,200 This case was in relation to 1 flat. The unexpired lease term was 82.93 years.