There is no doubt about it a leasehold property in Haddenham is a wasting asset as a result of the diminishing lease term. If the lease has, more than 125 years remaining then this decrease may be fractional that being said there will become a stage when a lease has less than eighty years left as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the primary rational as to why you should consider extending sooner than later. Many flat owners in Haddenham will meet the qualifying criteria; however a conveyancer can confirm whether you qualify for a lease extension. In limited situations you may not qualify, the most frequent reason being that you have owned the property for less than two years.
It is conventional wisdom that a property with over 100 years remaining is worth roughly the same as a freehold. Where an further ninety years added to all but the shortest lease, the property will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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; |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| 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 Haddenham can be a difficult process. We recommend you obtain professional help 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 procuring Haddenham lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Leo was the the leasehold proprietor of a high value flat in Haddenham being marketed with a lease of a few days over fifty eight years outstanding. Leo informally contacted his landlord being a well known Manchester-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 new rent at the outset set at £200 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Leo to invoke his statutory right. Leo obtained expert advice and was able to make a more informed judgement and deal with the matter and readily saleable.
Ms Kayleigh Simon moved into a first floor flat in Haddenham in August 2004. We are asked if we could shed any light on how much (approximately) compensation to the landlord could be to prolong the lease by 90 years. Identical residencies in Haddenham with an extended lease were in the region of £275,000. The average ground rent payable was £45 collected every twelve months. The lease elapsed on 18 August 2095. Given that there were 69 years outstanding we estimated the premium to the freeholder for the lease extension to be between £12,400 and £14,200 exclusive of costs.
Last Summer we were e-mailed by Dr Bethan Gray , who bought a one bedroom flat in Haddenham in January 2002. The dilemma was if we could estimate the premium would likely be for a 90 year extension to my lease. Identical properties in Haddenham with 100 year plus lease were in the region of £216,000. The average amount of ground rent was £60 billed monthly. The lease finished in 2084. Having 58 years left we approximated the premium to the landlord for the lease extension to be within £28,500 and £33,000 plus costs.