Main reasons to commence your Hampton lease extension
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Main reasons to commence your Hampton lease extension today:
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<h4> A <a href="http://www.lendermonitor.com/conveyancing/loc/hampton">Hampton</a> leasehold property depreciates with the years remaining on the lease.
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<p> As the length of the unexpired term of a Hampton domestic lease lessens so does its value and therefore the value of your property. Where the residual term has, over 125 years remaining then this decrease may be of little impact however there will become a point in time when a lease has fewer than 80 years left as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the main logic behind why you should extend the lease without delay. The majority of flat owners in Hampton will meet the qualifying criteria; however a lawyer can confirm whether you qualify for a lease extension. In certain situations you may not qualify, the most common reason being that you have owned the property for under two years.
<h4>An extended lease is almost the same value as a freehold</h4>
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Leasehold residencies in Hampton with more than 100 years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate charges justify it. <h4>Lenders may decide not to loan monies on a short lease</h4> Mortgage lenders have specific criteria when loaning monies charged on leasehold homes. Some will simply refrain from lending at all once an unexpired lease term drops below a specified unexpired lease term. Many Lending institutions will not regard property with an unexpired below 75 years suitable security. In addition to this being important when selling, it is also relevant where you are seeking to remortgage your Hampton property.
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<tr><th>Lender</th>
<th> Requirement
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<td>Barclays plc</td>
<td> Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below).<br /><br />Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office.<br /><br />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:<br /><br />• 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<br />• The value of the property subject to the short remaining term is £500,000 or more AND<br />• 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;
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<td>Barnsley Building Society</td>
<td> 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term.
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<td>Halifax</td>
<td> Minimum 70 years from the date of the mortgage.
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<td>Skipton Building Society</td>
<td> 85 years from the date of completion of the mortgage<br /><br />For Buy to Let cases:<br />- lettings must not breach any of the lessee’s covenants; and<br />- consent of the lessor to lettings must be obtained if necessary
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<td>TSB</td>
<td> Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption.
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<h4> Get in touch with one of our Hampton lease extension solicitors or enfranchisement solicitors
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<p> Retaining our service gives you increased control over the value of your Hampton leasehold, as your property will be more valuable and marketable in respect of lease length should you decide to sell.
The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions. <h4>
Hampton Lease Extension Example Cases:
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<h5> Milo, Hampton, South West London,</h5>
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Milo was the the leasehold proprietor of a studio flat in Hampton on the market with a lease of just over 72 years unexpired. Milo on an informal basis spoke with his landlord being a well known local-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years subject to an increased rent to £100 yearly. Ordinarily, ground rent would not be due on a lease extension were Milo to exercise his statutory right. Milo obtained expert legal guidance and was able to make a more informed decision and deal with the matter and readily saleable.
<h5>Hampton case:</h5>
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Last May we were contacted by Mr H King , who
acquired a purpose-built flat in Hampton in September 2002. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord could be for a ninety year lease extension. Comparative properties in Hampton with an extended lease were valued around £265,000. The average ground rent payable was £50 collected quarterly. The lease finished in 2099. Taking into account 73 years as a residual term we approximated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 plus expenses.
<div> <h5>Decision in Hounslow</h5>
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An example of a Lease Extension matter before the tribunal 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 affected 1 flat. The unexpired term as at the valuation date was 82.93 years.
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