There is no doubt about it a leasehold flat or house in Hammersmith is a wasting asset as a result of the diminishing lease term. If the lease has, over 100 years remaining then this decrease may be negligible that being said there will become a point in time when a lease has less than eighty years left as part of the premium you will incur is what is termed as a marriage value. This could increase markedly the cost. It is the main reason why you should extend the lease sooner rather than later. The majority of flat owners in Hammersmith will meet the qualifying criteria; nevertheless a conveyancer should be able to confirm if you qualify for a lease extension. In certain situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
It is conventional wisdom that a residential leasehold with more than 100 years remaining is worth roughly the same as a freehold. Where an additional 90 years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years in the future.
| 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. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Leeds Building Society | 85 years remaining from the start 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
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 terms of lease length should you want to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Off the back of protracted correspondence with the landlord of her basement apartment in Hammersmith, Jasmine initiated the lease extension process just as her lease was nearing the crucial eighty-year threshold. The lease extension was concluded in May 2014. The landlord’s fees were kept to an absolute minimum.
In 2009 we were approached by Ms E Cook who, having owned a basement apartment in Hammersmith in November 2004. We are asked if we could shed any light on how much (roughly) price would be to extend the lease by 90 years. Comparable properties in Hammersmith with a long lease were in the region of £280,000. The average ground rent payable was £55 billed annually. The lease concluded on 14 February 2104. Having 78 years left we approximated the premium to the freeholder to extend the lease to be between £13,300 and £15,400 not including professional charges.
An example of a Freehold Enfranchisement decision for a Hammersmith property 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 was 68.32 years.