The market value of Cheshunt leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of extending the lease can increase materialy once the remaining term is less than 80 years
Leasehold residencies in Cheshunt with more than 100 years remaining on the lease are often 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 estate charges merit it.
| Lender | Requirement |
|---|---|
| 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 30 years plus the term of the mortgage at the outset of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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 Cheshunt can be a difficult process. We recommend you procure guidance from a conveyancing solicitor and surveyor with experience in this area.
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.
Off the back of unsuccessful negotiations with the freeholder of her purpose-built flat in Cheshunt, Alisha started the lease extension process as the eighty year mark was fast coming. The transaction was finalised in April 2010. The freeholder’s charges were restricted to about 600 GBP.
Last month we were e-mailed by Mr and Mrs. D Khan , who purchased a purpose-built flat in Cheshunt in July 2011. We are asked if we could shed any light on how much (approximately) premium could be for a ninety year extension to my lease. Identical properties in Cheshunt with a long lease were in the region of £198,800. The mid-range ground rent payable was £55 collected every twelve months. The lease terminated in 2081. Taking into account 55 years left we estimated the compensation to the landlord to extend the lease to be between £33,300 and £38,400 exclusive of costs.
Ms Gemma Walker moved into a one bedroom apartment in Cheshunt in September 2011. We are asked if we could estimate the premium would be for a ninety year extension to my lease. Comparative properties in Cheshunt with 100 year plus lease were worth £300,000. The mid-range amount of ground rent was £50 collected every twelve months. The lease concluded in 2101. Taking into account 75 years unexpired we calculated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 exclusive of fees.