Unfortunately that a West Hampstead residential lease is a wasting asset. As the lease term reduces so does the value of the property. The extent of this is taken for granted in the early years due to the depreciation being disguised by increases in the West Hampstead property prices.Where your lease has approximately ninety years left, you need to start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease dips under 80 years - otherwise a higher amount will be due. The majority of flat owners in West Hampstead will be able to extend under the legislation; however a conveyancer should be able to confirm whether you are eligibility. In some situations you may not qualify. There are also strict timeframes and procedures to follow once the process has commenced and you will need to be guided by your conveyancer throughout the process.
It is conventional wisdom that a residential leasehold with more than one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the property will be equivalent in value to 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in West Hampstead can be a difficult process. We recommend you secure guidance from a lawyer 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 in-depth market knowledge dealing with West Hampstead lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last October Hunter, came dangerously close to the 80-year mark with the lease on his first floor apartment in West Hampstead. In buying his flat 18 years ago, the lease term was of little significance. by good luck, he became aware that he needed to take action soon on Extending the lease. Hunter was able to extend his lease just ahead of time last March. Hunter and the landlord in the end agreed on sum of £6,000 . If the lease had slid to less than 80 years, the price would have escalated by a minimum £1,100.
In 2013 we were e-mailed by Dr Hollie Petit who, having owned a newly refurbished flat in West Hampstead in September 1995. The question was if we could estimate the premium would likely be for a ninety year extension to my lease. Comparative residencies in West Hampstead with a long lease were worth £250,000. The mid-range amount of ground rent was £50 billed monthly. The lease elapsed on 26 February 2094. Taking into account 69 years remaining we approximated the compensation to the landlord for the lease extension to be within £9,500 and £11,000 plus legals.
An example of a Lease Extension matter before the tribunal for a West Hampstead residence is Flat A 372 Cricklewood Lane in January 2013. The Tribunal decided that the premium for the extended lease should be £5,750.00 and that the terms of the new lease should be those set out in annex to the decsion This case affected 1 flat.