Hammersmith leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease gets more expensive. Most owners of residential leasehold property in Hammersmith enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Hammersmith you would be well advised to investigate if your lease has between 70 and ninety years remaining. In particular once the remaining lease term slips under eighty years, the cost of any lease extension sharply increases as an element of the premium you pay is what is known as a marriage value
It is conventional wisdom that a residential leasehold with over one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | 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. |
| 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. |
| 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. |
Regardless of whether you are a tenant or a freeholder in Hammersmith,the lease extension solicitors 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.
Last year William, came seriously near to the eighty-year mark with the lease on his leasehold apartment in Hammersmith. Having purchased his property twenty years previously, the length of the lease was of little concern. Fortunately, he recognised he would imminently be paying an inflated amount for Extending the lease. William was able to extend his lease just under the wire last August. William and the freeholder via the managing agents eventually agreed on an amount of £6,000 . If the lease had slipped below 80 years, the sum would have escalated by a minimum £875.
In 2012 we were approached by Mrs C Bailey who, having bought a one bedroom apartment in Hammersmith in March 1998. We are asked if we could estimate the price would be to prolong the lease by 90 years. Identical homes in Hammersmith with a long lease were in the region of £264,000. The mid-range ground rent payable was £60 invoiced quarterly. The lease expired in 2079. Given that there were 53 years unexpired we calculated the compensation to the freeholder to extend the lease to be between £37,100 and £42,800 plus fees.
An example of a Freehold Enfranchisement decision 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 related to 2 flats. The unexpired residue of the current lease was 68.32 years.