The re-sale value of a leasehold property in Hammersmith is impacted by how long the lease has remaining. If it is near to or fewer than 80 years you should envisage problems on re-sale, so it is advisable to arrange for the lease to be extended before buying. It is ideal to start the lease extension process when a lease still has 82 years to run so that formalities can be addressed in advance of the eighty year mark. Statute enables Hammersmith qualifying lessees to obtain a new lease which will be for the current unexpired lease term plus an additional term of ninety years. The purpose of the valuation is to arrive at an opinion of the premium payable by the lessee to the freeholder for the acquisition of the lease extension.
Leasehold residencies in Hammersmith with more than one hundred 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 premises. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| 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. |
Regardless of whether you are a tenant or a landlord in Hammersmith,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Hammersmith valuers.
Isaac was the the leasehold proprietor of a 2 bedroom flat in Hammersmith being marketed with a lease of fraction over sixty years outstanding. Isaac on an informal basis contacted his landlord a well known London-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years subject to a new rent at the outset set at £100 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Isaac to invoke his statutory right. Isaac obtained expert legal guidance and was able to make a more informed decision and handle with the matter and readily saleable.
Ms O Lefèvre moved into a first floor apartment in Hammersmith in July 2000. The question was if we could approximate the compensation to the landlord would be to extend the lease by ninety years. Comparative premises in Hammersmith with an extended lease were in the region of £200,800. The average amount of ground rent was £65 invoiced every twelve months. The lease elapsed in 2085. Considering the 60 years remaining we calculated the compensation to the freeholder to extend the lease to be between £20,900 and £24,200 not including legals.
An example of a Freehold Enfranchisement decision for a Hammersmith flat is 19 Crisp Road in June 2009. Following a vesting order (Under section 26 of the Leasehold Reform,Housing and Urban Development Act 1993) The tribunal determined that the premium payable for the acquisition of the freehold was £33,756,apportioned as to£12,285 for the lower at and £21,471for the upper fat. This case affected 2 flats. The unexpired residue of the current lease was 68.32 years.