Hampden Pk leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease becomes more expensive. Legislation has been in place for sometime now allowing qualifying Hampden Pk residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Hampden Pk you really ought to investigate if your lease has between 70 and 90 years remaining. In particular once the remaining lease term slips under 80 years, the compensation to the landlord for any lease extension increases dramatically as an element of the premium you pay is what is known as a marriage value
Leasehold residencies in Hampden Pk with in excess of one hundred years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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; |
| Godiva Mortgages | 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. |
| Leeds Building Society | 85 years remaining from the start 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. |
The lawyers that we work with undertake Hampden Pk 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 conveyancer we work with provide it.
Half a year ago Ali, started to get close to the 80-year threshold with the lease on his one bedroom flat in Hampden Pk. Having bought his flat twenty years previously, the length of the lease was of little bearing. Thankfully, it dawned on him that he needed to take steps soon on Extending the lease. Ali was able to extend his lease just under the wire last January. Ali and the freeholder in the end agreed on sum of £6,000 . If he not met the deadline, the sum would have gone up by a minimum £1,050.
Dr N González purchased a one bedroom apartment in Hampden Pk in March 2001. The dilemma was if we could shed any light on how much (approximately) price would be to prolong the lease by ninety years. Comparable homes in Hampden Pk with 100 year plus lease were in the region of £280,000. The average ground rent payable was £45 collected quarterly. The lease ran out in 2094. Taking into account 69 years remaining we estimated the compensation to the landlord for the lease extension to be within £12,400 and £14,200 not including legals.
In 2014 we were phoned by Mr and Mrs. T Clarke who, having completed a ground floor apartment in Hampden Pk in April 1995. We are asked if we could estimate the price would likely be to extend the lease by an additional years. Comparable homes in Hampden Pk with an extended lease were valued about £216,000. The average amount of ground rent was £60 invoiced quarterly. The lease ended on 25 February 2083. Taking into account 58 years remaining we estimated the compensation to the landlord to extend the lease to be within £28,500 and £33,000 exclusive of costs.