Haddenham leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease becomes more expensive. Most owners of residential leasehold property in Haddenham enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Haddenham you really ought to see if your lease has between seventy and 90 years remaining. There are good reasons why a Haddenham leaseholder with a lease having around eighty years left should take action to ensure that a lease extension is effected without delay
It is generally accepted that a residential leasehold with more than one hundred years remaining is worth approximately the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be worth the same as a freehold for many years ahead.
| 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 75 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Regardless of whether you are a tenant or a freeholder in Haddenham,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 experience and the close ties they enjoy with Haddenham valuers.
Last Autumn Finley, started to get near to the eighty-year threshold with the lease on his purpose- built flat in Haddenham. Having purchased his home two decades ago, the length of the lease was of minimal importance. Fortunately, he realised he would soon be paying an escalated premium for Extending the lease. Finley extended the lease at the eleventh hour last January. Finley and the landlord in the end agreed on a premium of £5,000 . If the lease had gone lower than 80 years, the price would have increased by a minimum £850.
Last Winter we were e-mailed by Mr N Campbell , who completed a studio apartment in Haddenham in November 2006. The dilemma was if we could approximate the premium could be to extend the lease by an additional years. Comparable residencies in Haddenham with 100 year plus lease were worth £257,800. The mid-range amount of ground rent was £65 invoiced quarterly. The lease ended on 7 November 2091. Having 65 years remaining we calculated the premium to the freeholder to extend the lease to be within £18,100 and £20,800 plus professional charges.
Last Winter we were contacted by Mrs Melissa Bonnet , who moved into a recently refurbished flat in Haddenham in March 1996. We are asked if we could approximate the price would likely be to extend the lease by ninety years. Similar premises in Haddenham with a long lease were valued about £191,400. The average amount of ground rent was £55 invoiced per annum. The lease terminated on 20 October 2080. Having 54 years remaining we approximated the premium to the landlord to extend the lease to be within £34,200 and £39,600 not including costs.