Hampton leases on domestic deteriorating in value. Where your lease has in the region of ninety years remaining, you should start thinking about a lease extension. If lease term is less than 80 years, you will then be required to pay half of the property's 'marriage value' in addition to the standard cost of the lease extension to your landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Leasehold owners in Hampton will mostly be legally entitled to a lease extension; however it’s a good idea to check with a conveyancing solicitor to check if you qualify. In certain cases you may not qualify. There are also strict deadlines and formalities to follow once the process is triggered so it’s prudent to be guided by a lawyer during the process.
Leasehold properties in Hampton with in excess of one hundred years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little upside in buying the freehold unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Barnsley Building Society | |
| National Westminster Bank | |
| Nationwide Building Society | |
| Yorkshire Building Society |
The conveyancers that we work with undertake Hampton 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.
Half a year ago Alex, started to get near to the eighty-year threshold with the lease on his ground floor apartment in Hampton. In buying his property 19 years ago, the unexpired term was of little relevance. Thankfully, he noticed he would imminently be paying an inflated amount for a lease extension. Alex extended the lease just ahead of time last March. Alex and the landlord who owned the flat above ultimately agreed on sum of £5,000 . If the lease had gone to less than eighty years, the figure would have gone up by a minimum £950.
In 2013 we were approached by Mr and Mrs. V Scott who, having completed a one bedroom apartment in Hampton in June 2012. The dilemma was if we could estimate the compensation to the landlord could be to extend the lease by ninety years. Comparable premises in Hampton with a long lease were in the region of £200,800. The mid-range ground rent payable was £65 collected per annum. The lease lapsed in 2086. Having 60 years outstanding we calculated the premium to the freeholder to extend the lease to be within £20,900 and £24,200 plus costs.
An example of a Lease Extension decision for a Hampton flat is 147 Redford Close in June 2012. The Tribunal determined the lease extension premium to be at £4,200 This case related to 1 flat. The unexpired residue of the current lease was 82.93 years.