Hamworthy residential property owned on a long lease is a depreciating asset because a leaseholder only owns the property for a period of years.
Leasehold properties in Hamworthy with over one hundred years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and estate charges justify it.
| 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; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Hamworthy can be a difficult process. We recommend you secure professional help from a conveyancing solicitor and surveyor well versed in the legislation and lease extension process.
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 Hamworthy lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Finn was the the leasehold owner of a high value flat in Hamworthy being marketed with a lease of a few days over sixty years outstanding. Finn informally contacted his landlord being a well known Bristol-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years on the basis of a rise in the rent to £50 per annum. No ground rent would be payable on a lease extension were Finn to invoke his statutory right. Finn procured expert advice and secured an acceptable deal informally and sell the flat.
Last Spring we were contacted by Dr Lucas Khan , who moved into a newly refurbished flat in Hamworthy in July 2003. The question was if we could shed any light on how much (roughly) premium would likely be to prolong the lease by ninety years. Similar properties in Hamworthy with an extended lease were in the region of £246,800. The mid-range ground rent payable was £60 billed quarterly. The lease elapsed on 20 April 2075. Taking into account 50 years outstanding we calculated the compensation to the freeholder for the lease extension to be between £44,700 and £51,600 exclusive of costs.
Last February we were contacted by Dr Tyler Brooks , who was assigned a lease of a studio flat in Hamworthy in March 1997. The dilemma was if we could shed any light on how much (approximately) price would likely be for a ninety year extension to my lease. Comparative flats in Hamworthy with a long lease were in the region of £208,200. The average amount of ground rent was £65 invoiced yearly. The lease lapsed in 2086. Considering the 61 years outstanding we approximated the compensation to the freeholder for the lease extension to be between £20,000 and £23,000 not including costs.