The re-sale value of a leasehold property in Hampden Pk is impacted by how many years the lease has remaining. If it is close to or fewer than 80 years you should anticipate difficulties on re-sale, so it is recommended to arrange for the lease to be extended prior to buying. It is ideal to start the process of extending the lease is when the lease still has 82 years unexpired so that a lease extension can be finalised ahead of the 80 year mark. Statute enables Hampden Pk qualifying lessees to an additional term of 90 years on top of the existing term, at a peppercorn rent (no ground rent). The intention of the valuation is to arrive at an opinion of the amount payable by the lessee to the freeholder for the acquisition of the lease extension.
It is generally accepted that a residential leasehold with over 100 years remaining is worth approximately the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the premises will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Coventry Building Society | 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Engaging our service gives you enhanced control over the value of your Hampden Pk leasehold, as your property will be more valuable and saleable in terms of lease length should you wish to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
After unsuccessful discussions with the landlord of her two bedroom flat in Hampden Pk, Jennifer started the lease extension process just as her lease was nearing the crucial eighty-year threshold. The lease extension was finalised in March 2015. The freeholder’s costs were restricted to less than 550 GBP.
Mr and Mrs. R Gray took over the lease of a purpose-built apartment in Hampden Pk in February 2005. The question was if we could estimate the premium would likely be for a ninety year extension to my lease. Similar properties in Hampden Pk with 100 year plus lease were valued about £250,400. The average ground rent payable was £65 invoiced yearly. The lease ran out in 2089. Given that there were 64 years as a residual term we estimated the premium to the landlord for the lease extension to be within £19,000 and £22,000 not including fees.
In 2014 we were phoned by Dr V Lee who, having took over the lease of a one bedroom apartment in Hampden Pk in October 2001. The dilemma was if we could estimate the compensation to the landlord would likely be for a ninety year lease extension. Identical premises in Hampden Pk with a long lease were valued around £189,000. The average ground rent payable was £55 invoiced monthly. The lease came to a finish in 2078. Given that there were 53 years outstanding we calculated the compensation to the freeholder to extend the lease to be between £28,500 and £33,000 not including costs.