The value of Hampden Pk leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of extending the lease can increase materialy once the unexpired lease term is below than 80 years
Leasehold premises in Hampden Pk with in excess of 100 years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). 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; |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a landlord in Hampden Pk,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Hampden Pk valuers.
Following protracted negotiations with the freeholder of her purpose-built flat in Hampden Pk, Hannah started the lease extension process as the eighty year deadline was quickly coming. The transaction was finalised in September 2013. The freeholder’s charges were kept to an absolute minimum.
In 2009 we were approached by Mr and Mrs. I Collins who, having moved into a basement apartment in Hampden Pk in June 2004. The dilemma was if we could estimate the premium would likely be to extend the lease by ninety years. Comparable premises in Hampden Pk with a long lease were worth £240,600. The average amount of ground rent was £65 collected annually. The lease terminated in 2088. Taking into account 62 years outstanding we approximated the premium to the freeholder for the lease extension to be within £21,900 and £25,200 plus fees.
Last Autumn we were e-mailed by Mr and Mrs. W Thomas , who was assigned a lease of a basement apartment in Hampden Pk in January 2009. The question was if we could approximate the compensation to the landlord would likely be for a ninety year lease extension. Comparable flats in Hampden Pk with a long lease were in the region of £174,200. The mid-range amount of ground rent was £55 collected monthly. The lease lapsed on 15 September 2077. Given that there were 51 years as a residual term we approximated the compensation to the landlord for the lease extension to be between £31,400 and £36,200 not including expenses.