It’s an underpublicised truth that a Cheshunt residential lease is a deteriorating asset. The lease value drops in proportion to its lease length. The extent of this is taken for granted in the first few years due to the depreciation being disguised by increases in the Cheshunt property prices.Once your lease gets to 85ish years, you should start thinking about a lease extension. If lease term falls below eighty years, you will then be required to pay 50% of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. The marriage fee is the amount of additional value that a lease extension will add the property Most flat owners in Cheshunt will be able to extend under the legislation; however a lawyer should be able to confirm whether you are eligibility. In some cases you may not be entitled. There are also strict deadlines and procedures to follow once the process has commenced and you will need to be guided by your lawyer for the duration of the formalities.
It is generally considered that a residential leasehold with in excess of 100 years remaining is worth roughly the equivalent as a freehold. Where an additional ninety years added to any lease with more than 35 years left, the residence will be worth the same as a freehold for many years in the future.
| 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Irrespective of whether you are a tenant or a freeholder in Cheshunt,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Cheshunt valuers.
Following protracted correspondence with the landlord of her leasehold flat in Cheshunt, Alice initiated the lease extension process as the eighty year deadline was fast approaching. The legal work was concluded in October 2008. The freeholder’s charges were kept to an absolute minimum.
In 2011 we were contacted by Mr and Mrs. H Díaz who, having was assigned a lease of a ground floor apartment in Cheshunt in October 2001. The dilemma was if we could approximate the premium would likely be to extend the lease by 90 years. Identical homes in Cheshunt with a long lease were worth £181,600. The mid-range ground rent payable was £55 invoiced yearly. The lease terminated on 11 August 2077. Having 52 years as a residual term we calculated the premium to the landlord for the lease extension to be between £30,400 and £35,200 exclusive of expenses.
Mr and Mrs. V Adams purchased a garden apartment in Cheshunt in July 2009. The dilemma was if we could estimate the compensation to the landlord would likely be for a ninety year extension to my lease. Comparable homes in Cheshunt with an extended lease were worth £290,000. The mid-range ground rent payable was £45 invoiced annually. The lease ended on 9 August 2097. Having 72 years remaining we estimated the compensation to the freeholder to extend the lease to be between £11,400 and £13,200 not including expenses.