With a domestic leasehold premises in Hammersmith And Fulham, you are actually purchasing an entitlement to live in a property for a set period of time. These days flat leases typically tend to be for 99 years or 125. Even though this may appear like a long period of time, you should consider a lease extension sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly notably once there are fewer than eighty years remaining. Leasehold owners in Hammersmith And Fulham with a lease drawing near to 81 years left should seriously consider extending it sooner rather than later. When a lease has below eighty years outstanding, under the current statute the freeholder is entitled to calculate and levy a greater amount, based on a technical computation, known as “marriage value” which is payable.
It is conventional wisdom that a residential leasehold with more than 100 years remaining is worth approximately the same as a freehold. Where an additional 90 years added to any lease with more than 30 years left, the property will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Hammersmith And Fulham can be a difficult process. We recommend you procure guidance from a conveyancer and valuer with experience in lease extensions.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience dealing with Hammersmith And Fulham lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Toby owned a high value apartment in Hammersmith And Fulham being sold with a lease of a little over 72 years left. Toby on an informal basis approached his freeholder a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent to start with set at £150 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Toby to exercise his statutory right. Toby procured expert advice and secured an acceptable deal informally and ending up with a market value flat.
Last month we were e-mailed by Mr and Mrs. G Martinez , who owned a one bedroom apartment in Hammersmith And Fulham in February 1997. The dilemma was if we could approximate the premium would likely be to prolong the lease by ninety years. Comparative properties in Hammersmith And Fulham with a long lease were in the region of £198,800. The average amount of ground rent was £55 billed yearly. The lease expired in 2080. Given that there were 55 years unexpired we estimated the premium to the freeholder to extend the lease to be within £33,300 and £38,400 plus costs.
In 2012 we were contacted by Mr and Mrs. N Michel who, having completed a garden flat in Hammersmith And Fulham in October 1999. We are asked if we could approximate the price would likely be to prolong the lease by an additional years. Comparative homes in Hammersmith And Fulham with a long lease were worth £300,000. The average amount of ground rent was £50 billed annually. The lease ended on 24 April 2100. Given that there were 75 years remaining we estimated the compensation to the landlord for the lease extension to be between £8,600 and £9,800 not including fees.