Ham leases on residential properties are gradually losing value. Where your lease has approximately 90 years remaining, you should start thinking about a lease extension. Eighty years is a significant number: when the unexpired term of a lease falls below this level then you begin incurring an additional element called marriage value. Leasehold owners in Ham will usually qualify for a lease extension; however a solicitor should be able confirm if you qualify. In some cases you may not be entitled. There are also strict timetables and steps to follow once the process is triggered so it’s sensible to be guided by a conveyancer during the process.
Leasehold properties in Ham with over one hundred years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start 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 |
| 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. |
Using our service gives you increased control over the value of your Ham leasehold, as your property will be more valuable and saleable in terms of lease length should you want to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
In recent months Felix, started to get near to the 80-year mark with the lease on his studio flat in Ham. In buying his flat two decades ago, the length of the lease was of little importance. Thankfully, he became aware that he would soon be paying an inflated amount for a lease extension. Felix extended the lease just under the wire last August. Felix and the landlord who owned the flat above in the end settled on sum of £5,000 . If he failed to meet the deadline, the sum would have become more exhorbitant by at least £1,075.
In 2011 we were called by Mr K Jones who, having completed a garden flat in Ham in April 2010. We are asked if we could estimate the compensation to the landlord would likely be for a 90 year lease extension. Similar residencies in Ham with a long lease were valued around £252,800. The average ground rent payable was £65 invoiced quarterly. The lease finished on 27 October 2090. Considering the 65 years outstanding we calculated the compensation to the landlord to extend the lease to be within £18,100 and £20,800 exclusive of expenses.
An example of a Lease Extension decision for a Ham premises 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.