The market value of a leasehold property in Haddenham depends on how long the lease has remaining. If it is close to or less than eighty years you should foresee problems on re-sale, so it is recommended to arrange for a lease extension prior to purchasing. Ideally one should start the process of extending the lease is when the lease still has 82 years to run so that formalities can be addressed ahead of the eighty year cut off point. Current legislation enables Haddenham qualifying lessees to an additional term of 90 years over and above the remaining term, at a peppercorn rent (zero ground rent). The purpose of the valuation is to arrive at an opinion of the amount payable by the lessee to the freeholder for the purchase of the lease extension.
It is generally considered that a property with in excess of one hundred years unexpired lease term is worth approximately the same as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Coventry Building Society | 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
The lawyers that we work with procure Haddenham 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.
Kian was the the leasehold owner of a 2 bedroom apartment in Haddenham being marketed with a lease of a little over 61 years remaining. Kian on an informal basis contacted his freeholder being a well known local-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years subject to a rise in the rent to £125 per annum. Ordinarily, ground rent would not be due on a lease extension were Kian to exercise his statutory right. Kian procured expert legal guidance and secured satisfactory deal informally and ending up with a market value flat.
Last month we were contacted by Mr and Mrs. W Stewart , who was assigned a lease of a basement flat in Haddenham in April 2002. The dilemma was if we could shed any light on how much (approximately) premium would be for a 90 year lease extension. Comparative homes in Haddenham with 100 year plus lease were valued about £250,400. The mid-range ground rent payable was £65 invoiced monthly. The lease came to a finish on 21 November 2087. Taking into account 64 years unexpired we calculated the premium to the landlord for the lease extension to be between £19,000 and £22,000 not including fees.
In 2011 we were contacted by Mr and Mrs. W Roux who, having acquired a first floor flat in Haddenham in July 2009. We are asked if we could shed any light on how much (approximately) compensation to the landlord would likely be to prolong the lease by 90 years. Comparable residencies in Haddenham with 100 year plus lease were valued about £189,000. The average ground rent payable was £55 collected annually. The lease elapsed in 2076. Given that there were 53 years remaining we calculated the premium to the landlord for the lease extension to be within £28,500 and £33,000 plus professional charges.