Cheshunt leases on domestic deteriorating in value. Where your lease has in the region of ninety years unexpired, you should start thinking about a lease extension. If lease term falls under eighty years, you will then be required to pay half 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 additional value that a lease extension will add to the property. Flat owners in Cheshunt will mostly qualify for a lease extension; however It would be wise to check with a conveyancing solicitor to confirm your eligibility. In certain circumstances you may not qualify. There are prescribed deadlines and formalities to follow once the process has started so it’s prudent to be guided by a conveyancer during the process.
Leasehold premises in Cheshunt with over one hundred years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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. |
The lawyers that we work with undertake Cheshunt 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.
David was the the leasehold owner of a 2 bedroom apartment in Cheshunt being sold with a lease of a few days over sixty years remaining. David informally contacted his freeholder being a well known Manchester-based freehold company for a lease extension. The landlord was keen to give an extension on non-statutory terms taking the lease to 125 years subject to a new rent initially set at £150 per annum and doubled every 25 years thereafter. No ground rent would be payable on a lease extension were David to invoke his statutory right. David procured expert legal guidance and was able to make a more informed judgement and deal with the matter and ending up with a market value flat.
Dr Archie Adams bought a garden flat in Cheshunt in July 2001. The question was if we could approximate the compensation to the landlord would likely be for a ninety year extension to my lease. Comparative residencies in Cheshunt with 100 year plus lease were worth £171,800. The mid-range ground rent payable was £55 collected quarterly. The lease terminated on 20 January 2076. Given that there were 50 years unexpired we calculated the compensation to the freeholder to extend the lease to be within £33,300 and £38,400 exclusive of expenses.
In 2014 we were phoned by Dr A Green who, having bought a one bedroom apartment in Cheshunt in September 1999. The question was if we could shed any light on how much (roughly) price would be to prolong the lease by an additional years. Comparative flats in Cheshunt with a long lease were worth £280,000. The average ground rent payable was £45 billed every twelve months. The lease end date was in 2096. Having 70 years unexpired we approximated the premium to the freeholder to extend the lease to be within £12,400 and £14,200 not including costs.