There is no doubt about it a leasehold property in Hampstead is a wasting asset as a result of the shortening lease. Where the lease has, in excess of 100 years to run then this decrease may be of little impact however there will become a stage when a lease has under than 80 years unexpired as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the primary logic behind why you should extend the lease without delay. Many flat owners in Hampstead will qualify for this right; however a lawyer should be able to confirm if you are eligible for a lease extension. In certain situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
Leasehold premises in Hampstead with over one hundred years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate charges warrant it.
| 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Hampstead can be a difficult process. We recommend you obtain guidance from a conveyancer and valuer well versed in the legislation and lease extension process.
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 Hampstead lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Following lengthy negotiations with the freeholder of her basement flat in Hampstead, Aimee initiated the lease extension process just as the lease was nearing the all-important eighty-year mark. The lease extension was finalised in May 2006. The freeholder’s fees were kept to an absolute minimum.
Last Christmas we were phoned by Dr Noah Bailey , who acquired a purpose-built apartment in Hampstead in May 2004. We are asked if we could estimate the premium would likely be for a 90 year lease extension. Comparative residencies in Hampstead with a long lease were valued about £260,000. The mid-range ground rent payable was £50 invoiced yearly. The lease concluded on 10 March 2097. Having 72 years remaining we approximated the compensation to the freeholder for the lease extension to be between £9,500 and £11,000 not including professional charges.
An example of a Lease Extension decision for a Hampstead residence is Raised Ground Floor Flat 20 Fitzjohns Avenue in July 2014. the Tribunal decided that the premiums to be paid for new leases in respect of the Raised Ground Floor Flat and the First Floor Flat were to be calculated as: Raised Ground Floor: £765,175.14 First Floor: £601,617.77 This case affected 2 flats. The unexpired term as at the valuation date was 16.83 and 16.43.