As the length of the unexpired term of a Hampstead domestic lease lessens so does its value and therefore the value of your property. Where the lease has, over one hundred years remaining then this decrease may be fractional that being said there will become a point in time when a lease has less than eighty years unexpired as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the primary logic behind why you should consider extending sooner rather than later. Most flat owners in Hampstead will meet the qualifying criteria; nevertheless a conveyancing solicitor should be able to confirm if you qualify to extend your lease. In limited situations you may not qualify, the most common reason being that you have owned the property for under two years.
Leasehold premises in Hampstead with more than one hundred years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| Yorkshire Building Society | 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. |
Regardless of whether you are a tenant or a freeholder in Hampstead,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Hampstead valuers.
Last Winter Aiden, started to get close to the 80-year mark with the lease on his leasehold apartment in Hampstead. Having purchased his home 19 years previously, the length of the lease was of minimal bearing. As luck would have it, it dawned on him that he needed to take steps soon on a lease extension. Aiden arranged for a lease extension just in the nick of time last July. Aiden and the freeholder in the end settled on the final figure of £6,000 . If he had missed the deadline, the price would have escalated by a minimum £950.
In 2010 we were contacted by Ms Robyn Rivera who, having moved into a one bedroom flat in Hampstead in March 2007. We are asked if we could estimate the price would be to prolong the lease by an additional years. Similar premises in Hampstead with an extended lease were worth £242,600. The average amount of ground rent was £45 collected yearly. The lease came to a finish on 27 July 2093. Given that there were 67 years outstanding we estimated the premium to the freeholder to extend the lease to be within £11,400 and £13,200 plus costs.
An example of a Lease Extension decision 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 affected 2 flats. The number of years remaining on the existing lease(s) was 16.83 and 16.43.