When it comes to domestic leasehold premises in Cheshunt, you are actually purchasing an entitlement to reside in a property for a set period of time. In recent years flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you may think about a lease extension sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly especially once there are fewer than 80 years remaining. Residents in Cheshunt with a lease approaching 81 years left should seriously consider extending it as soon as possible. When the lease term has below 80 years left, under the current Act the freeholder is entitled to calculate and charge a greater premium, based on a technical calculation, strangely termed as “marriage value” which is due.
Leasehold premises in Cheshunt with in excess of one hundred years left 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 premises. In such situations 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. |
| 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; |
| 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. |
| 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. |
| 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. |
Lease extensions in Cheshunt can be a difficult process. We recommend you secure professional help from a lawyer and valuer 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 a wealth of experience 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.
Two years ago Gabriel, came critically close to the eighty-year mark with the lease on his studio flat in Cheshunt. Having purchased his home two decades ago, the unexpired term was of little interest. Luckily, he realised he would soon be paying an inflated amount for Extending the lease. Gabriel arranged for a lease extension just in the nick of time last March. Gabriel and the landlord ultimately agreed on an amount of £5,500 . If he not met the deadline, the price would have gone up by a minimum £1,100.
Ms Bethan Díaz acquired a studio flat in Cheshunt in May 2003. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord could be for a 90 year extension to my lease. Similar flats in Cheshunt with a long lease were worth £208,600. The average ground rent payable was £60 collected monthly. The lease concluded on 12 July 2083. Given that there were 57 years as a residual term we estimated the premium to the landlord to extend the lease to be within £30,400 and £35,200 not including professional charges.
In 2013 we were phoned by Mrs Natasha Taylor who, having took over the lease of a recently refurbished apartment in Cheshunt in August 2003. The question was if we could shed any light on how much (approximately) price would be to extend the lease by an additional years. Comparative homes in Cheshunt with an extended lease were valued about £200,000. The average ground rent payable was £50 collected yearly. The lease finished on 14 June 2103. Taking into account 77 years remaining we estimated the compensation to the landlord to extend the lease to be between £8,600 and £9,800 plus costs.