Top reasons for Hampton Hill lease extension

Why you should commence your Hampton Hill lease extension today:

A Hampton Hill lease depreciates with the years remaining on the lease.

Hampton Hill leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease becomes more expensive. The majority of owners of residential leasehold property in Hampton Hill enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Hampton Hill you should see if your lease has between seventy and 90 years remaining. In particular once the remaining lease term slips under eighty years, the cost of any lease extension sharply increases as part of the premium you pay is what is known as a marriage value

Hampton Hill property with a lease extension is almost the same value as a freehold

Leasehold properties in Hampton Hill with over 100 years remaining 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 premises. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and estate charges justify it.

Banks and Building Societies may decide not to finance a property with a short lease

Nearly all mortgage lenders will not grant a mortgage on a lease with less than seventy years unexpired - although this varies from lender to lender. A purchaser will no doubt encounter difficulties to obtain a mortgage and this could result in your Hampton Hill property being difficult to dispose of or to obtain finance on.

What makes us experts in Hampton Hill lease extensions?

Irrespective of whether you are a tenant or a landlord in Hampton Hill,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Hampton Hill valuers.

Hampton Hill Lease Extension Case Summaries:

Jamie, Hampton Hill, North London,

Jamie was the the leasehold proprietor of a studio flat in Hampton Hill being marketed with a lease of a few days over 72 years left. Jamie informally approached his landlord being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to agree an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £200 per annum. Ordinarily, ground rent would not be payable on a lease extension were Jamie to exercise his statutory right. Jamie obtained expert advice and was able to make an informed judgement and handle with the matter and ending up with a market value flat.

Hampton Hill case:

In 2011 we were contacted by Dr Katherine Murphy who, having bought a ground floor apartment in Hampton Hill in August 1997. The dilemma was if we could approximate the price could be for a ninety year lease extension. Similar homes in Hampton Hill with 100 year plus lease were valued around £264,000. The average ground rent payable was £60 billed annually. The lease elapsed on 26 February 2078. Taking into account 53 years as a residual term we estimated the premium to the landlord for the lease extension to be between £37,100 and £42,800 not including legals.