Cheshunt leases on domestic deteriorating in value. if your lease has about 90 years left, you should start considering the need for a lease extension. If lease term is less than 80 years, you will then have to pay 50% of the property's 'marriage value' on top of the standard cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Leasehold owners in Cheshunt will mostly be legally entitled to a lease extension; however a solicitor should be able check your eligibility. In certain circumstances you may not be entitled. There are prescribed timetables and formalities to follow once the process has commenced so it’s wise to be guided by a conveyancing solicitor during the process.
It is conventional wisdom that a property with in excess of 100 years remaining is worth approximately the same as a freehold. Where an further 90 years added to all but the shortest lease, the property will be worth the same as a freehold for many years in the future.
| 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 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; |
| Godiva Mortgages | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
Lease extensions in Cheshunt 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 in-depth market knowledge dealing with Cheshunt 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 Aarav, started to get near to the eighty-year mark with the lease on his basement apartment in Cheshunt. In buying his property two decades ago, the length of the lease was of little relevance. Thankfully, it dawned on him that he would soon be paying an inflated amount for a lease extension. Aarav was able to extend his lease just under the wire in July. Aarav and the landlord eventually agreed on sum of £5,500 . If he not met the deadline, the price would have escalated by a minimum £900.
In 2011 we were phoned by Dr I García who, having took over the lease of a studio flat in Cheshunt in April 1996. We are asked if we could shed any light on how much (approximately) premium would likely be to extend the lease by ninety years. Comparative homes in Cheshunt with an extended lease were worth £250,400. The average ground rent payable was £65 billed quarterly. The lease expired in 2089. Considering the 64 years outstanding we approximated the premium to the freeholder to extend the lease to be between £19,000 and £22,000 plus fees.
Last year we were contacted by Dr D Patel , who bought a ground floor flat in Cheshunt in May 2007. The question was if we could estimate the premium could be to extend the lease by ninety years. Identical premises in Cheshunt with an extended lease were worth £189,000. The mid-range ground rent payable was £55 billed every twelve months. The lease terminated on 24 February 2078. Given that there were 53 years left we estimated the compensation to the landlord for the lease extension to be between £28,500 and £33,000 not including costs.