Ham leases on domestic deteriorating in value. if your lease has in the region of ninety years left, you should start thinking about a lease extension. Eighty years is a significant number: when the remaining term of a lease dips below this level then you begin incurring an additional element called marriage value. Flat owners in Ham will usually qualify for a lease extension; however It would be wise to check with a conveyancer to confirm if you qualify. In some circumstances you may not qualify. There are also strict timetables and steps to follow once the process has commenced so it’s best to be guided by a conveyancer during the process.
It is generally accepted that a property with over 100 years remaining is worth approximately the equivalent as a freehold. Where an further ninety years added to any lease with more than 30 years remaining, the property will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| 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 be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
Regardless of whether you are a tenant or a landlord in Ham,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Ham valuers.
Two years ago Theo, came perilously close to the eighty-year mark with the lease on his leasehold flat in Ham. In buying his home two decades ago, the length of the lease was of minimal relevance. Luckily, he noticed he needed to take steps soon on a lease extension. Theo was able to extend his lease just under the wire last January. Theo and the landlord who owned the flat above ultimately agreed on sum of £5,500 . If the lease had dropped lower than 80 years, the sum would have escalated by a minimum £1,125.
Last March we were called by Mr and Mrs. P Gunderson , who purchased a first floor apartment in Ham in July 2006. The dilemma was if we could estimate the compensation to the landlord would be for a ninety year extension to my lease. Identical homes in Ham with an extended lease were valued around £198,800. The mid-range amount of ground rent was £55 invoiced yearly. The lease finished in 2081. Taking into account 55 years unexpired we approximated the compensation to the freeholder to extend the lease to be between £33,300 and £38,400 exclusive of costs.
An example of a Lease Extension case 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 related to 1 flat.