Owning a apartment usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. This lease will normally be granted for a prescribed period of time , usually 99 or 125 years, although we have seen longer and shorter terms in Hammersmith. Inevitably, the period of lease left shortens over time. This is often overlooked and only becomes a problem when the residence has to be disposed of or re-mortgaged. The shorter the lease the lower the value of the property and the more expensive it will be to extend the lease. Qualifying leaseholders in Hammersmith have the right to extend the lease for a further 90 years under Leasehold Reform legislation. Do give due consideration before putting off your Hammersmith lease extension. Holding off that expense now likely increases the price you will eventually have to pay for a lease extension
Leasehold residencies in Hammersmith with in excess of 100 years unexpired 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 property. In such situations there is often little upside in buying the freehold unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Hammersmith can be a difficult process. We recommend you get professional help from a conveyancing solicitor and valuer with experience in this area.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience dealing with Hammersmith lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Two years ago Alex, came dangerously close to the eighty-year mark with the lease on his two bedroom apartment in Hammersmith. In buying his property 19 years previously, the length of the lease was of minimal importance. As luck would have it, he recognised he needed to take steps soon on Extending the lease. Alex arranged for a lease extension just in the nick of time last September. Alex and the landlord who owned the flat above subsequently settled on the final figure of £5,500 . If he not met the deadline, the figure would have escalated by at least £1,075.
Last Winter we were e-mailed by Dr E Carter , who completed a garden apartment in Hammersmith in March 2001. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord would likely be for a ninety year extension to my lease. Comparative premises in Hammersmith with an extended lease were in the region of £280,000. The average ground rent payable was £55 billed yearly. The lease termination date was in 2103. Considering the 78 years unexpired we approximated the premium to the landlord for the lease extension to be between £13,300 and £15,400 plus 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 was in relation to 2 flats. The unexpired term as at the valuation date was 68.32 years.