Unfortunately that a Cheshunt residential lease is a wasting asset. As the lease term reduces so does the value of the property. The extent of this is taken for granted in the first few years due to the loss of value being disguised by increases in the Cheshunt property prices.Where your lease has approximately ninety years left, you should start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease falls below 80 years - otherwise a higher premium will be due. Most leasehold owners in Cheshunt will be able to extend under the legislation; however a conveyancing solicitor should be able to clarify whether you are eligibility. In some situations you may not qualify. There are also strict deadlines and procedures to be adhered to once the process is initiated and you will need to be guided by your lawyer throughout the process.
Leasehold premises in Cheshunt with over one hundred years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate 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. |
| 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. |
| 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. |
Using our service gives you better control over the value of your Cheshunt leasehold, as your property will be more valuable and marketable in relation to the lease length should you wish to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Caleb was the the leasehold owner of a high value flat in Cheshunt being sold with a lease of just over 72 years left. Caleb on an informal basis approached his landlord a well known local-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent to start with set at £150 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Caleb to exercise his statutory right. Caleb obtained expert advice and was able to make a more informed judgement and handle with the matter and sell the property.
Last Autumn we were contacted by Ms Hollie Taylor , who was assigned a lease of a basement flat in Cheshunt in August 2002. We are asked if we could shed any light on how much (approximately) premium would likely be for a 90 year lease extension. Identical properties in Cheshunt with 100 year plus lease were valued about £290,000. The average amount of ground rent was £45 billed per annum. The lease came to a finish in 2099. Taking into account 73 years remaining we calculated the compensation to the freeholder to extend the lease to be between £9,500 and £11,000 exclusive of professional charges.
In 2009 we were approached by Mrs J Garcia who, having took over the lease of a one bedroom flat in Cheshunt in April 2006. The question was if we could estimate the compensation to the landlord would likely be for a 90 year extension to my lease. Identical residencies in Cheshunt with an extended lease were in the region of £240,600. The average amount of ground rent was £60 billed every twelve months. The lease expired on 26 November 2088. Given that there were 62 years unexpired we approximated the premium to the landlord to extend the lease to be within £21,900 and £25,200 exclusive of fees.