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 your lease gets 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 must check if your lease has between 70 and 90 years remaining. In particular once the remaining lease term slips under 80 years, the amount payable for any lease extension increases dramatically as an element of the premium you will incur is what is known as a marriage value
It is generally accepted that a residential leasehold with in excess of one hundred years remaining is worth roughly the equivalent as a freehold. Where an further 90 years added to any lease with more than 30 years left, the property will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | 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. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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 landlord in Haddenham,the lease extension lawyers 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 year Muhammad, came very close to the eighty-year mark with the lease on his studio flat in Haddenham. Having purchased his flat two decades ago, the length of the lease was of no relevance. Fortunately, it dawned on him that he would soon be paying an escalated premium for a lease extension. Muhammad extended the lease at the eleventh hour in May. Muhammad and the landlord ultimately settled on a premium of £6,000 . If he failed to meet the deadline, the price would have become more exhorbitant by at least £1,075.
In 2013 we were called by Mrs G Gunderson who, having bought a ground floor flat in Haddenham in March 1995. We are asked if we could shed any light on how much (roughly) premium would be to prolong the lease by a further 90 years. Comparable flats in Haddenham with 100 year plus lease were in the region of £208,600. The average amount of ground rent was £60 invoiced monthly. The lease end date was in 2083. Given that there were 57 years left we estimated the premium to the landlord for the lease extension to be within £30,400 and £35,200 exclusive of legals.
Last June we were contacted by Mrs G Evans , who moved into a purpose-built apartment in Haddenham in February 2004. The dilemma was if we could estimate the premium could be for a ninety year extension to my lease. Comparable premises in Haddenham with a long lease were in the region of £200,000. The average amount of ground rent was £50 billed monthly. The lease concluded on 7 February 2103. Given that there were 77 years unexpired we calculated the compensation to the landlord for the lease extension to be between £8,600 and £9,800 not including professional charges.