On the balance of probabilities where you own a flat in Hammersmith And Fulham you actually own a long leasehold interest over your property
It is conventional wisdom that a residential leasehold with more than 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| 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; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 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 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The conveyancers that we work with handle Hammersmith And Fulham 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 lawyer we work with provide it.
Following unsuccessful correspondence with the landlord of her basement apartment in Hammersmith And Fulham, Charlotte initiated the lease extension process as the eighty year deadline was rapidly advancing. The transaction was concluded in March 2011. The freeholder’s costs were negotiated to less than 550 pounds.
Last month we were e-mailed by Mrs Grace Gunderson , who was assigned a lease of a garden flat in Hammersmith And Fulham in April 2006. The dilemma was if we could estimate the price would be for a ninety year extension to my lease. Identical residencies in Hammersmith And Fulham with a long lease were in the region of £191,400. The mid-range amount of ground rent was £55 invoiced monthly. The lease expired on 19 June 2080. Having 54 years as a residual term we calculated the premium to the landlord to extend the lease to be between £34,200 and £39,600 plus professional charges.
Dr Jordan Laurent was assigned a lease of a purpose-built flat in Hammersmith And Fulham in September 2006. We are asked if we could estimate the premium would likely be to extend the lease by an additional years. Identical residencies in Hammersmith And Fulham with 100 year plus lease were in the region of £290,000. The average amount of ground rent was £45 collected yearly. The lease expired on 4 March 2100. Given that there were 74 years remaining we calculated the premium to the landlord to extend the lease to be within £8,600 and £9,800 plus legals.