Unfortunately that a Hammersmith residential lease is a deteriorating asset. As the lease term diminishes so does the value of the property. The extent of this is not fully appreciated in the first few years due to the depreciation being disguised by increases in the Hammersmith property market.Once your lease nears 85ish years, you should start thinking about a lease extension. If lease term dips under eighty years, you will end up paying half of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add the property Most leasehold owners in Hammersmith will be able to extend under the legislation; however a lawyer should be able to confirm whether you qualify for an extension. In some situations you may not qualify. There are also strict deadlines and procedures to follow once the process is instigated and you will need to be guided by your conveyancing solicitor for the duration of the process.
Leasehold properties in Hammersmith with in excess of one hundred years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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 will provide you better control over the value of your Hammersmith leasehold, as your property will be more valuable and marketable in relation to the lease length should you want to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
During the course of the last few months Leo, started to get near to the eighty-year threshold with the lease on his basement apartment in Hammersmith. In buying his property two decades ago, the lease term was of little interest. As luck would have it, he noticed he would soon be paying way over the odds for a lease extension. Leo arranged for a lease extension just in the nick of time in August. Leo and the freeholder via the management company subsequently agreed on the final figure of £5,000 . If he failed to meet the deadline, the amount would have increased by at least £950.
In 2014 we were called by Mr and Mrs. M White who, having acquired a newly refurbished flat in Hammersmith in March 2008. The question was if we could estimate the premium could be to extend the lease by 90 years. Comparable residencies in Hammersmith with a long lease were worth £261,600. The mid-range ground rent payable was £60 collected per annum. The lease concluded on 18 October 2077. Given that there were 52 years outstanding we estimated the premium to the freeholder to extend the lease to be within £39,000 and £45,000 plus costs.
An example of a Freehold Enfranchisement decision for a Hammersmith residence 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 related to 2 flats. The unexpired term as at the valuation date was 68.32 years.