When it comes to residential leasehold premises in Hampton, you are actually buying a right to reside in a property for a set period of time. These days flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned as this seems like a long period of time, you should consider a lease extension sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease gets disproportionately greater especially when there are less than 80 years remaining. Leasehold owners in Hampton with a lease approaching 81 years left should seriously consider extending it sooner than later. When the lease term has under eighty years remaining, under the current Act the landlord can calculate and levy a larger amount, based on a technical calculation, known as “marriage value” which is due.
It is conventional wisdom that a property with in excess of one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date 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 |
The conveyancers that we work with procure 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 Zachary, started to get near to the 80-year threshold with the lease on his ground floor apartment in Hampton. Having bought his flat two decades ago, the length of the lease was of little importance. Fortunately, he recognised he needed to take action soon on a lease extension. Zachary arranged for a lease extension just ahead of time last March. Zachary and the landlord who owned the flat above ultimately agreed on sum of £6,000 . If the lease had dropped to less than 80 years, the figure would have increased by at least £925.
In 2013 we were approached by Mr and Mrs. G Miller who, having was assigned a lease of a first floor flat in Hampton in August 1999. We are asked if we could shed any light on how much (approximately) price would be to prolong the lease by a further 90 years. Comparative flats in Hampton with a long lease were worth £250,000. The mid-range amount of ground rent was £50 invoiced monthly. The lease came to a finish on 1 January 2095. Considering the 69 years outstanding we estimated the premium to the freeholder to extend the lease to be within £9,500 and £11,000 exclusive of professional charges.
An example of a Lease Extension decision for a Hampton premises 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 term as at the valuation date was 82.93 years.