Hampstead leases on residential deteriorating in value. Where your lease has in the region of 90 years unexpired, you should start thinking about a lease extension. 80 years is a significant number: when the unexpired term of a lease drops below this level then you start paying an additional element called marriage value. Flat owners in Hampstead will mostly be legally entitled to a lease extension; however it’s a good idea to check with a conveyancer to check if you qualify. In certain circumstances you may not qualify. There are prescribed deadlines and procedures to follow once the process is initiated so it’s prudent to be guided by a conveyancer during the process.
It is conventional wisdom that a residential leasehold with over one hundred years remaining is worth roughly the same as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| Yorkshire 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. |
Retaining our service gives you increased control over the value of your Hampstead leasehold, as your property will be more valuable and marketable in relation to the lease length should you want to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
18 months ago Zachary, started to get near to the 80-year mark with the lease on his ground floor apartment in Hampstead. In buying his property two decades ago, the lease term was of little bearing. Fortunately, he noticed he would imminently be paying way over the odds for a lease extension. Zachary extended the lease just under the wire last September. Zachary and the landlord in the end agreed on a premium of £6,000 . If the lease had slipped below 80 years, the price would have gone up by at least £1,100.
Mr and Mrs. T Robinson acquired a one bedroom flat in Hampstead in July 2004. We are asked if we could estimate the compensation to the landlord would be to extend the lease by ninety years. Similar properties in Hampstead with a long lease were valued around £173,800. The average amount of ground rent was £60 billed annually. The lease elapsed on 26 February 2081. Given that there were 55 years left we approximated the premium to the freeholder to extend the lease to be between £31,400 and £36,200 exclusive of 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 was in relation to 2 flats. The unexpired residue of the current lease was 16.83 and 16.43.