The basic rule is, all other things holding equal, the shorter the lease the more costly the premium. Qualifying leaseholders in Hampton can extend the lease for an additional 90 years under Leasehold Reform legislation. Do give careful consideration before delaying your Hampton lease extension. Postponing that expense today simply escalates the premium you will eventually be required to pay to extend the lease.
It is generally considered that a residential leasehold with in excess of 100 years remaining is worth roughly the same as a freehold. Where an further ninety years added to any lease with more than 35 years remaining, the premises will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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; |
| 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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 get professional help from a lawyer and valuer with experience in this area.
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 a wealth of experience procuring Hampton lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last year Riley, came precariously close to the 80-year threshold with the lease on his purpose- built apartment in Hampton. Having purchased his home two decades ago, the unexpired term was of no bearing. Thankfully, he noticed he needed to take action soon on a lease extension. Riley extended the lease at the eleventh hour in January. Riley and the landlord who owned the flat above subsequently agreed on the final figure of £6,000 . If the lease had slid lower than 80 years, the price would have gone up by at least £1,125.
Last Summer we were approach by Mr and Mrs. O François , who bought a one bedroom apartment in Hampton in November 1995. The question was if we could approximate the compensation to the landlord would be for a ninety year lease extension. Comparative residencies in Hampton with an extended lease were valued about £210,600. The mid-range amount of ground rent was £45 collected per annum. The lease came to a finish in 2087. Having 62 years as a residual term we calculated the premium to the landlord to extend the lease to be within £18,100 and £20,800 plus expenses.
An example of a Lease Extension case 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 was in relation to 1 flat. The unexpired lease term was 82.93 years.