For anyone whose Cheshunt flat is held on a long lease, the message is clear – if no remedial action is taken, your property will eventually revert to the freeholder, leaving you empty-handed. The fewer the years remaining the less it is worth and the more it will cost to obtain a lease extension.
It is generally accepted that a property with over 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an further ninety years added to any lease with more than 30 years unexpired, the residence will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barclays plc | |
| Halifax | |
| National Westminster Bank | |
| Skipton Building Society | |
| The Mortgage Works |
Irrespective of whether you are a tenant or a freeholder in Cheshunt,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Cheshunt valuers.
Last October Hunter, came perilously near to the eighty-year threshold with the lease on his studio flat in Cheshunt. In buying his property 19 years previously, the unexpired term was of no concern. Thankfully, he became aware that he needed to take steps soon on a lease extension. Hunter extended the lease at the eleventh hour last September. Hunter and the freeholder eventually agreed on the final figure of £5,000 . If the lease had fallen to less than 80 years, the figure would have increased by at least £1,075.
Dr Isabelle Lambert moved into a ground floor flat in Cheshunt in March 2009. We are asked if we could approximate the premium would be to extend the lease by a further 90 years. Similar residencies in Cheshunt with an extended lease were worth £240,600. The average amount of ground rent was £60 invoiced every twelve months. The lease ran out on 27 November 2088. Having 62 years left we calculated the compensation to the landlord for the lease extension to be between £21,900 and £25,200 exclusive of professional charges.
Last Autumn we were called by Mr H Scott , who bought a first floor flat in Cheshunt in January 1997. The dilemma was if we could shed any light on how much (approximately) premium would likely be for a 90 year lease extension. Comparative flats in Cheshunt with an extended lease were valued about £174,200. The mid-range amount of ground rent was £55 invoiced yearly. The lease finished in 2077. Given that there were 51 years unexpired we estimated the premium to the freeholder to extend the lease to be between £31,400 and £36,200 exclusive of costs.