The re-sale value of a leasehold property in Hampton Hill is impacted by how long the lease has left to run. If it is close to or less than 80 years you should expect difficulties on re-sale, so it is recommended to arrange for the lease to be extended prior to buying. It is preferable to start the lease extension process when a lease still has 82 years remaining so that a lease extension can be concluded in advance of the 80 year threshold. Current legislation entitles Hampton Hill qualifying lessees to obtain a lease extension of 90 years on top of the remaining lease term at a peppercorn rent (that is, rent free). The reason of the valuation is to arrive at an opinion of the sum payable by the lessee to the freeholder for the acquisition of the lease extension.
Leasehold premises in Hampton Hill with over one hundred years left on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset 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. |
Lease extensions in Hampton Hill can be a difficult process. We recommend you procure 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 Hampton Hill lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
16 months ago Eli, started to get near to the 80-year threshold with the lease on his two bedroom flat in Hampton Hill. In buying his property two decades ago, the unexpired term was of little bearing. Thankfully, it dawned on him that he would imminently be paying an inflated amount for Extending the lease. Eli extended the lease just ahead of time in April. Eli and the landlord ultimately agreed on sum of £5,000 . If he not met the deadline, the price would have increased by a minimum £1,050.
In 2011 we were contacted by Mr W Clarke who, having owned a basement flat in Hampton Hill in April 2007. We are asked if we could estimate the premium would likely be for a ninety year extension to my lease. Identical residencies in Hampton Hill with an extended lease were valued about £285,000. The average ground rent payable was £55 billed monthly. The lease end date was on 7 September 2105. Taking into account 79 years unexpired we approximated the compensation to the landlord for the lease extension to be between £13,300 and £15,400 exclusive of costs.
An example of a Lease Extension case for a Hampton Hill premises is Ground Floor Flat 91 Bath Road in May 2009. in a case where the freeholder could not be traced, the Brentford County Court ordered that the Lease be surrendered in return for the grant of a new lease of the Premises at a premium determined by the Leasehold Valuation Tribunal. The tribunal concluded that the price payable by the Applicant for the new lease of the premises be £15,900 This case affected 1 flat. The unexpired lease term was 60.45 years.