Chances are that if you own a flat in Hamworthy you actually own a long leasehold interest over your property
Leasehold properties in Hamworthy with over one hundred years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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 handle Hamworthy 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 conveyancer we work with provide it.
Liam was the the leasehold owner of a studio flat in Hamworthy being sold with a lease of a few days over sixty years unexpired. Liam on an informal basis spoke with his landlord a well known London-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of a rise in the rent to £100 yearly. No ground rent would be payable on a lease extension were Liam to invoke his statutory right. Liam procured expert legal guidance and secured satisfactory deal informally and sell the property.
Mr Kian Cox owned a basement apartment in Hamworthy in March 1996. The question was if we could estimate the compensation to the landlord would be to prolong the lease by 90 years. Identical properties in Hamworthy with a long lease were valued around £275,000. The average ground rent payable was £55 billed yearly. The lease came to a finish in 2102. Considering the 76 years unexpired we approximated the premium to the landlord for the lease extension to be between £9,500 and £11,000 not including costs.
Last Autumn we were contacted by Mr and Mrs. V King , who acquired a recently refurbished apartment in Hamworthy in January 2003. The question was if we could shed any light on how much (approximately) price could be for a 90 year extension to my lease. Comparable premises in Hamworthy with 100 year plus lease were in the region of £176,200. The mid-range ground rent payable was £65 invoiced per annum. The lease ran out in 2082. Taking into account 56 years remaining we approximated the premium to the landlord to extend the lease to be within £29,500 and £34,000 plus fees.