Hammersmith leases on domestic properties are gradually losing value. if your lease has approximately ninety years left, you should start considering the need for a lease extension. An important point to note is that it is desirable for your lease extension to be in place before the term of the existing lease dips under 80 years - otherwise a higher amount will be payable. Leasehold owners in Hammersmith will usually be legally entitled to a lease extension; however It would be wise to check with a lawyer to check if you qualify. In certain cases you may not be entitled. There are prescribed deadlines and procedures to comply with once the process has started so it’s sensible to be guided by a conveyancing solicitor during the process.
Leasehold premises in Hammersmith with more than 100 years remaining on the lease are sometimes referred to as ‘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 reversionary interest unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| 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. |
The conveyancing solicitors that we work with handle Hammersmith lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
In 2014 Edward, came seriously close to the eighty-year mark with the lease on his leasehold flat in Hammersmith. In buying his flat 18 years previously, the length of the lease was of little bearing. by good luck, he recognised he would imminently be paying an escalated premium for Extending the lease. Edward extended the lease just under the wire last August. Edward and the freeholder via the managing agents in the end agreed on sum of £6,000 . If he failed to meet the deadline, the price would have escalated by at least £1,025.
In 2014 we were approached by Mr and Mrs. M Taylor who, having owned a ground floor flat in Hammersmith in May 1996. We are asked if we could estimate the price could be for a 90 year extension to my lease. Similar premises in Hammersmith with an extended lease were valued around £173,800. The average amount of ground rent was £65 invoiced monthly. The lease finished in 2081. Having 55 years remaining we calculated the compensation to the landlord to extend the lease to be between £31,400 and £36,200 plus legals.
An example of a Freehold Enfranchisement case for a Hammersmith premises 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 was in relation to 2 flats. The number of years remaining on the existing lease(s) was 68.32 years.