When it comes to residential leasehold property in Hampstead, you are in fact renting it for a certain period of time. These days flat leases are usually granted for 99 years or 125. Even though this may appear like a long period of time, you may consider extending the lease sooner rather than later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly particularly once there are less than 80 years left. Residents in Hampstead with a lease nearing 81 years unexpired should seriously consider extending it without delay. When a lease has under eighty years left, under the relevant statute the landlord is entitled to calculate and demand a greater amount, based on a technical multiplication, known as “marriage value” which is due.
It is conventional wisdom that a residential leasehold with more than 100 years remaining is worth roughly the same as a freehold. Where an additional 90 years added to any lease with more than 35 years left, the premises will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Halifax | |
| National Westminster Bank | |
| TSB | |
| The Mortgage Works | |
| Yorkshire Building Society |
The conveyancing solicitors that we work with handle Hampstead 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 lawyer we work with provide it.
Jake was the the leasehold owner of a conversion flat in Hampstead being sold with a lease of a few days over sixty years remaining. Jake informally contacted his freeholder being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent at the outset set at £150 per annum and doubled every 25 years thereafter. No ground rent would be payable on a lease extension were Jake to exercise his statutory right. Jake procured expert legal guidance and secured satisfactory deal informally and ending up with a market value flat.
Last month we were approach by Mr Alex Torres , who was assigned a lease of a newly refurbished flat in Hampstead in July 2000. We are asked if we could shed any light on how much (roughly) compensation to the landlord could be to prolong the lease by 90 years. Similar homes in Hampstead with an extended lease were in the region of £235,200. The mid-range ground rent payable was £45 billed quarterly. The lease expired on 19 September 2092. Having 66 years outstanding we calculated the premium to the landlord for the lease extension to be within £12,400 and £14,200 not including legals.
An example of a Lease Extension decision for a Hampstead premises 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.