The nearer a residential lease in Hampton nears to zero years unexpired, the the greater the reduction in the value of the property. Where the residual term has, over 100 years remaining then this decrease may be fractional nevertheless there will become a point in time when a lease has less than eighty years remaining as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the main rational as to why you should extend the lease sooner rather than later. The majority of flat owners in Hampton will meet the qualifying criteria; nevertheless a lawyer should be able to confirm whether you are eligible to extend your lease. In limited situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
Leasehold residencies in Hampton with more than one hundred years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and estate charges warrant it.
| 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
Retaining our service will provide you enhanced control over the value of your Hampton leasehold, as your property will be more valuable and saleable in respect of lease length should you wish to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
14 months ago Nathan, started to get near to the eighty-year threshold with the lease on his ground floor flat in Hampton. In buying his property two decades ago, the length of the lease was of minimal interest. Thankfully, he noticed he needed to take action soon on Extending the lease. Nathan was able to extend his lease at the eleventh hour last September. Nathan and the freeholder ultimately settled on sum of £6,000 . If the lease had dipped below 80 years, the sum would have become more exhorbitant by at least £900.
Last July we were called by Mr and Mrs. D Peterson , who acquired a ground floor apartment in Hampton in November 2004. We are asked if we could approximate the price would likely be to prolong the lease by 90 years. Comparative premises in Hampton with an extended lease were valued around £168,800. The mid-range ground rent payable was £60 collected monthly. The lease expired on 20 February 2079. Given that there were 55 years unexpired we approximated the premium to the landlord for the lease extension to be within £31,400 and £36,200 plus professional charges.
An example of a Lease Extension case for a Hampton property is 147 Redford Close in June 2012. The Tribunal determined the lease extension premium to be at £4,200 This case affected 1 flat. The unexpired term as at the valuation date was 82.93 years.