When it comes to domestic leasehold premises in Hampstead, you are actually purchasing an entitlement to reside in a property for a set period of time. In recent years flat leases typically tend to be for 99 years or 125. Even though this may appear like a long period of time, you should think about 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 especially when there are less than 80 years left. Anyone in Hampstead with a lease approaching 81 years remaining should seriously think of extending it sooner than later. When a lease has below 80 years left, under the current legislation the freeholder is entitled to calculate and charge a larger amount, assessed on a technical multiplication, strangely termed as “marriage value” which is payable.
It is generally accepted that a property with in excess of 100 years unexpired lease term is worth approximately the same as a freehold. Where an further 90 years added to any lease with more than 35 years left, the premises will be equivalent in value to a freehold for decades to come.
|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||Mortgage term plus 25 years provided that leases of less than 85 years are be referred to us for approval.|
|Birmingham Midshires||Minimum 70 years from the date of the mortgage.|
|TSB||Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption.|
|Royal Bank of Scotland||Mortgage term plus 30 years. For a Lifetime Mortgage, the term must be no less than 150 years minus the age of the Borrower.|
Engaging our service will provide you enhanced control over the value of your Hampstead leasehold, as your property will be more valuable and marketable in terms of lease length should you want to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Last year Tyler, came seriously near to the 80-year threshold with the lease on his studio apartment in Hampstead. In buying his property 18 years ago, the lease term was of minimal concern. Luckily, he recognised he needed to take action soon on a lease extension. Tyler arranged for a lease extension at the eleventh hour last September. Tyler and the freeholder ultimately settled on the final figure of £6,000 . If the lease had dipped below eighty years, the sum would have become more exhorbitant by a minimum £850.
Last Summer we were called by Mr and Mrs. F Edwards , who bought a one bedroom apartment in Hampstead in August 1998. We are asked if we could approximate the premium would likely be to prolong the lease by 90 years. Similar premises in Hampstead with an extended lease were worth £250,000. The mid-range ground rent payable was £50 collected yearly. The lease finished in 2091. Taking into account 69 years as a residual term we calculated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 plus professional charges.
An example of a Lease Extension case for a Hampstead residence 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 remaining number of years on the lease was 16.83 and 16.43.