The rule of thumb is, all other things holding equal, the shorter the lease the more expensive the premium. Qualifying leaseholders in Cheshunt may extend the lease for an additional ninety years in accordance with Leasehold Reform legislation. Please give careful consideration before delaying your Cheshunt lease extension. Postponing the costs now simply escalates the premium you will eventually have to pay to extend the lease.
It is conventional wisdom that a property with more than 100 years unexpired lease term is worth roughly the same as a freehold. Where an further 90 years added to any lease with more than 45 years unexpired, the premises will be equivalent in value to a freehold for decades to come.
Lender | Requirement |
---|---|
Bank of Scotland | Minimum 70 years from the date of the mortgage. |
Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
National Westminster Bank | 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 conveyancing solicitors 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 conveyancing solicitor we work with provide it.
Liam owned a studio flat in Cheshunt on the market with a lease of just over 72 years left. Liam informally spoke with his landlord a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord was keen to give an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £50 yearly. No ground rent would be due on a lease extension were Liam to invoke his statutory right. Liam procured expert advice and was able to make an informed decision and handle with the matter and ending up with a market value flat.
Mr and Mrs. S Ricardo owned a recently refurbished flat in Cheshunt in July 2000. We are asked if we could estimate the compensation to the landlord would be to prolong the lease by an additional years. Comparative properties in Cheshunt with a long lease were valued about £198,800. The average amount of ground rent was £55 billed quarterly. The lease elapsed in 2080. Given that there were 55 years as a residual term we approximated the compensation to the freeholder to extend the lease to be between £33,300 and £38,400 not including costs.
In 2010 we were called by Dr Charlie Roberts who, having completed a one bedroom flat in Cheshunt in April 2008. The question was if we could approximate the premium could be for a ninety year lease extension. Comparative homes in Cheshunt with 100 year plus lease were worth £300,000. The average amount of ground rent was £50 billed per annum. The lease elapsed on 18 September 2100. Considering the 75 years remaining we approximated the premium to the freeholder to extend the lease to be within £9,500 and £11,000 not including legals.