The only way is down when it comes to Ham lease terms. Ham leaseholds that have a remaining term shorter than 80 years will drop in market price at a rapid rate, and the cost of extending your lease will increase.
It is conventional wisdom that a property with over one hundred years remaining is worth approximately the equivalent as a freehold. Where an additional 90 years added to any lease with more than 30 years left, the property will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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. |
The conveyancing solicitors that we work with handle Ham lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
In the wake of 9 months of lengthy correspondence with the landlord of her purpose-built apartment in Ham, Olivia initiated the lease extension process just as the lease was approaching the critical eighty-year threshold. The lease extension was concluded in May 2008. The landlord’s charges were negotiated to slightly above four hundred GBP.
In 2013 we were approached by Ms Harriet Peterson who, having moved into a basement flat in Ham in October 2009. The dilemma was if we could estimate the compensation to the landlord would likely be to extend the lease by 90 years. Similar homes in Ham with an extended lease were valued about £290,000. The average ground rent payable was £45 collected quarterly. The lease elapsed on 8 June 2098. Having 73 years outstanding we approximated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 plus professional charges.
An example of a Lease Extension matter before the tribunal for a Ham residence is Flat D 15 Claremont Gardens in September 2013. TheTribunal determined in accordance with section48 and Schedule13 of the Leasehold Reform,Housing and Urban Development Act 1993 that the premium for the extended lease should be fourteen thousand one hundred and eighty seven pounds (£14,187.00) This case affected 1 flat.