The closer a residential lease in Hampton nears to zero years unexpired, the the greater the reduction in the value of the property. Where the lease has, beyond one hundred years remaining then this decrease may be fractional nevertheless there will become a stage when a lease has less than eighty years left as part of the premium you will incur is what is known as a marriage value. This could increase markedly the cost. It is the primary rational as to why you should consider extending sooner rather than later. The majority of flat owners in Hampton will meet the qualifying criteria; however a conveyancer can advise if you qualify to extend your lease. In certain situations you may not qualify, the most frequent reason being that you have owned the property for less than two years.
Leasehold residencies in Hampton with in excess of one hundred years remaining on the lease are sometimes referred to as ‘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 purchasing the freehold unless savings on ground rent and estate charges justify 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 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; |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| 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. |
Irrespective of whether you are a tenant or a landlord in Hampton,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Hampton valuers.
In the wake of eight months of lengthy correspondence with the freeholder of her studio flat in Hampton, Ashleigh commenced the lease extension process just as the lease was coming close to the critical eighty-year deadline. The lease extension was finalised in January 2011. The landlord’s costs were kept to an absolute minimum.
Last Winter we were e-mailed by Dr Amber Scott , who acquired a purpose-built flat in Hampton in February 2000. The question was if we could estimate the price could be for a 90 year lease extension. Identical flats in Hampton with a long lease were worth £227,800. The average ground rent payable was £45 collected annually. The lease ran out on 13 April 2091. Considering the 65 years unexpired we calculated the premium to the freeholder to extend the lease to be within £13,300 and £15,400 not including costs.
An example of a Lease Extension decision for a Hampton residence 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 lease term was 82.93 years.