Why you should start your West Hampstead lease extension
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<h3> Top reasons for lease extension now:
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Increase your lease and increase your <a href="http://www.lendermonitor.com/conveyancing/loc/west-hampstead">West Hampstead</a> property value </h4>
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West Hampstead leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease gets more expensive. Most owners of residential leasehold property in West Hampstead enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in West Hampstead you would be well advised to see if your lease has between 70 and ninety years left. There are good reasons why a West Hampstead leaseholder with a lease having around eighty years unexpired should take action to make sure that a lease extension is put in place without delay <h4>An extended lease is almost the same value as a freehold</h4>
<p> It is generally accepted that a property with more than 100 years remaining is worth approximately the same as a freehold. Where an further 90 years added to any lease with more than 30 years remaining, the residence will be equivalent in value to a freehold for many years in the future.
<h4>Mortgage lenders may not lend on a short lease</h4> Banks and building societies differ in their lending requirements. Some draw the line at 75 years remaining on the lease; others may be prepared to lend with anything over 70 years. With less than sixty years, it may be difficult to get a mortgage in the first place.
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<td>Accord Mortgages</td>
<td> 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.
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<td>Bank of Scotland</td>
<td> Minimum 70 years from the date of the mortgage.
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<td>Lloyds TSB Scotland</td>
<td> Minimum 70 years from the date of the mortgage.
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<td>Santander</td>
<td> You must report the unexpired lease term to us and await our instructions if: <br />1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or<br />2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or<br />3. no valuation report is provided<br />However, we will not accept a lease where on expiry of the mortgage:<br />(i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or<br />(ii) less than 30 years remain and the loan is repaid on a capital and interest basis<br /><br />We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder.
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<td>Royal Bank of Scotland</td>
<td> Mortgage term plus 30 years.
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What makes us experts in West Hampstead lease extensions?
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<p> Regardless of whether you are a tenant or a landlord in West Hampstead,the lease extension solicitors 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.
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West Hampstead Lease Extension Example Cases:
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<h5> Katie, West Hampstead, North London,</h5>
<p> Following protracted discussions with the freeholder of her first floor apartment in West Hampstead, Katie started the lease extension process just as her lease was approaching the critical 80-year mark. The lease extension completed in August 2011. The freeholder’s costs were kept to an absolute minimum.
<h5>West Hampstead case:</h5>
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In 2013 we were approached by Mr J Mason who, having purchased a one bedroom flat in West Hampstead in May 2002. We are asked if we could estimate the price would likely be for a 90 year lease extension. Similar flats in West Hampstead with 100 year plus lease were valued about £264,000. The mid-range amount of ground rent was £60 collected quarterly. The lease finished on 13 March 2079. Considering the 53 years unexpired we estimated the compensation to the freeholder to extend the lease to be within £37,100 and £42,800 exclusive of expenses.
<div> <h5>Decision in Barnet</h5>
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An example of a Lease Extension decision 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 affected 1 flat.
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