Hampton leases on domestic properties are gradually losing value. Where your lease has in the region of 90 years unexpired, you should start thinking about a lease extension. It is important to recognise that it is that it is financially advisable for a lease extension to be in place before the term of the current lease drops under 80 years - otherwise a higher premium will be due. Leasehold owners in Hampton will usually be legally entitled to a lease extension; however a solicitor will confirm if you qualify. In certain cases you may not qualify. There are prescribed timetables and procedures to follow once the process is initiated so it’s sensible to be guided by a lawyer during the process.
It is conventional wisdom that a property with more than 100 years remaining is worth approximately the same as a freehold. Where an further ninety years added to any lease with more than 45 years left, the premises will be worth the same as a freehold for decades to come.
| 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. |
| Chelsea 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. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Engaging our service gives you enhanced control over the value of your Hampton leasehold, as your property will be more valuable and saleable in respect of lease length should you decide to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Two years ago Blake, started to get near to the 80-year mark with the lease on his two bedroom flat in Hampton. Having bought his flat two decades ago, the length of the lease was of little relevance. As luck would have it, he became aware that he needed to take steps soon on Extending the lease. Blake extended the lease just ahead of time last September. Blake and the landlord in the end settled on the final figure of £5,500 . If he not met the deadline, the sum would have escalated by at least £925.
In 2013 we were phoned by Dr K Cook who, having was assigned a lease of a purpose-built apartment in Hampton in June 2000. We are asked if we could estimate the price would likely be for a ninety year extension to my lease. Comparative premises in Hampton with an extended lease were in the region of £218,000. The average amount of ground rent was £45 collected annually. The lease finished on 26 May 2088. Considering the 63 years outstanding we calculated the premium to the landlord to extend the lease to be between £17,100 and £19,800 plus professional charges.
An example of a Lease Extension case for a Hampton property 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 was 82.93 years.