Hampton leases on domestic properties are gradually losing value. Where your lease has about ninety years unexpired, you should start considering the need for a lease extension. If lease term falls under eighty years, you will then have to pay 50% of the property's 'marriage value' in addition to the usual 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 qualify for a lease extension; however a solicitor will check your eligibility. In certain circumstances you may not qualify. There are also strict timetables and steps to comply with once the process has commenced so it’s best to be guided by a conveyancer during the process.
It is generally considered that a residential leasehold with in excess of 100 years remaining is worth roughly the equivalent as a freehold. Where an additional ninety years added to any lease with more than 30 years remaining, the residence will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| 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. |
| Godiva Mortgages | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| 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. |
Lease extensions in Hampton can be a difficult process. We recommend you procure guidance from a conveyancing solicitor and valuer with experience in lease extensions.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge dealing with Hampton lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In 2014 Noah, started to get near to the 80-year threshold with the lease on his leasehold apartment in Hampton. Having bought his home 19 years ago, the unexpired term was of minimal bearing. Fortunately, he recognised he would imminently be paying an inflated amount for a lease extension. Noah was able to extend his lease at the eleventh hour in March. Noah and the landlord subsequently settled on sum of £5,000 . If the lease had slid lower than eighty years, the price would have gone up by a minimum £850.
Dr Elizabeth Bernard was assigned a lease of a first floor apartment in Hampton in May 2000. We are asked if we could estimate the premium would be to extend the lease by ninety years. Comparative premises in Hampton with an extended lease were valued about £265,000. The average amount of ground rent was £50 collected every twelve months. The lease elapsed on 3 July 2099. Having 74 years unexpired we estimated the premium to the landlord to extend the lease to be between £9,500 and £11,000 plus professional charges.
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 was in relation to 1 flat. The number of years remaining on the existing lease(s) was 82.93 years.