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The closest I can get is that laett in Anglo-Saxon is the same as lath, a plank or piece of wood! And ham of course is a village or settlement, as in hamlet. Village of wooden houses? Seems odd - surely they all had wooden houses, or wattle and daub anyway - but etymologically it fits. Maybe it could have been used for a settlement of woodcutters?

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It's a pretty ordinary surname in English, but as a female name, it seems beyond odd. Perhaps it's the next Madison?