Hampton Wick leases on residential properties are gradually losing value. Where your lease has in the region of ninety years left, you should start thinking about a lease extension. Eighty years is a significant number: when the remaining term of a lease dips below this level then you start incurring an additional element called marriage value. Leasehold owners in Hampton Wick will mostly qualify for a lease extension; however a solicitor should be able check if you qualify. In certain situations you may not be entitled. There are also strict deadlines and steps to follow once the process has started so it’s best to be guided by a conveyancing solicitor during the process.
Leasehold residencies in Hampton Wick with more than one hundred years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Coventry Building Society | 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Regardless of whether you are a tenant or a freeholder in Hampton Wick,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 in-depth market knowledge and the close ties they enjoy with Hampton Wick valuers.
Hugo was the the leasehold owner of a studio apartment in Hampton Wick on the market with a lease of a few days over 72 years unexpired. Hugo on an informal basis spoke with his landlord being a well known Bristol-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent initially set at £150 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Hugo to invoke his statutory right. Hugo obtained expert advice and secured an acceptable deal informally and sell the flat.
In 2009 we were called by Dr S Murphy who, having completed a first floor apartment in Hampton Wick in January 2010. We are asked if we could estimate the premium would be for a 90 year lease extension. Identical premises in Hampton Wick with an extended lease were valued about £250,400. The average amount of ground rent was £65 billed quarterly. The lease terminated in 2089. Taking into account 64 years outstanding we calculated the premium to the landlord to extend the lease to be within £19,000 and £22,000 plus professional charges.
An example of a Lease Extension case for a Hampton Wick premises is Flat D 15 Claremont Gardens in September 2013. TheTribunal determined in accordance with section48 and Schedule13 of the Leasehold Reform,Housing and Urban Development Act 1993 that the premium for the extended lease should be fourteen thousand one hundred and eighty seven pounds (£14,187.00) This case was in relation to 1 flat.