West Hampstead leases on domestic deteriorating in value. Where your lease has in the region of 90 years unexpired, you should start considering the need for a lease extension. If lease term is under 80 years, you will then have to pay half of the property's 'marriage value' in addition to the standard cost of the lease extension to your landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Leasehold owners in West Hampstead will usually qualify for a lease extension; however a solicitor will check your eligibility. In some cases you may not qualify. There are prescribed timetables and steps to comply with once the process is initiated so it’s best to be guided by a lawyer during the process.
It is conventional wisdom that a property with more than one hundred years unexpired lease term is worth roughly the same as a freehold. Where an further 90 years added to any lease with more than 45 years remaining, the property will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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. |
Irrespective of whether you are a tenant or a landlord in West Hampstead,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with West Hampstead valuers.
In 2014 Jayden, started to get close to the eighty-year threshold with the lease on his first floor flat in West Hampstead. Having bought his property two decades ago, the lease term was of little relevance. Thankfully, it dawned on him that he would imminently be paying way over the odds for Extending the lease. Jayden extended the lease just in the nick of time in January. Jayden and the freeholder subsequently agreed on sum of £6,000 . If the lease had dipped to less than eighty years, the price would have gone up by at least £1,100.
In 2013 we were e-mailed by Mr and Mrs. H Sánchez who, having took over the lease of a recently refurbished apartment in West Hampstead in May 1995. We are asked if we could approximate the compensation to the landlord would likely be for a 90 year extension to my lease. Comparable properties in West Hampstead with a long lease were worth £245,000. The average ground rent payable was £50 billed annually. The lease termination date was on 14 March 2094. Having 68 years as a residual term we approximated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 plus professional charges.
An example of a Lease Extension case for a West Hampstead premises 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 was in relation to 1 flat.