As the the remaining lease term of a Hampstead residential lease lessens so does its value and therefore the value of your property. If the residual term has, more than 125 years remaining then this decrease may be of little impact nevertheless there will become a stage when a lease has under than 80 years unexpired as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the main logic behind why you should extend the lease sooner than later. Most flat owners in Hampstead will qualify for this right; however a conveyancer can advise whether you are eligible to extend your lease. In certain situations you may not qualify, the most frequent reason being that you have owned the property for under two years.
It is generally accepted that a property with more than 100 years remaining is worth roughly the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the residence will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Hampstead can be a difficult process. We recommend you secure professional help from a lawyer 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 Hampstead lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last Christmas Tyler, came perilously close to the 80-year threshold with the lease on his leasehold apartment in Hampstead. Having purchased his home two decades ago, the unexpired term was of no concern. Fortunately, he realised he needed to take steps soon on a lease extension. Tyler was able to extend his lease just in the nick of time in March. Tyler and the landlord who owned the flat above eventually settled on an amount of £6,000 . If he not met the deadline, the premium would have gone up by at least £1,075.
In 2014 we were called by Ms Anna Rodríguez who, having acquired a newly refurbished apartment in Hampstead in March 2000. We are asked if we could estimate the compensation to the landlord would likely be for a 90 year lease extension. Comparable homes in Hampstead with a long lease were worth £218,000. The average ground rent payable was £45 billed yearly. The lease expired on 27 September 2089. Considering the 63 years unexpired we estimated the premium to the landlord for the lease extension to be within £17,100 and £19,800 exclusive of costs.
An example of a Lease Extension matter before the tribunal for a Hampstead flat is Raised Ground Floor Flat 20 Fitzjohns Avenue in July 2014. the Tribunal decided that the premiums to be paid for new leases in respect of the Raised Ground Floor Flat and the First Floor Flat were to be calculated as: Raised Ground Floor: £765,175.14 First Floor: £601,617.77 This case was in relation to 2 flats. The unexpired term was 16.83 and 16.43.