The value of Hadleigh leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of extending the lease can increase materialy once the unexpired lease term is below than 80 years
It is generally considered that a residential leasehold with over 100 years remaining is worth roughly the same as a freehold. Where an further ninety 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Using our service gives you better control over the value of your Hadleigh leasehold, as your property will be more valuable and marketable in terms of lease length should you want to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Ryan was the the leasehold owner of a high value flat in Hadleigh being marketed with a lease of a little over fifty eight years outstanding. Ryan informally spoke with his freeholder being a well known Bristol-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent at the outset set at £100 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Ryan to exercise his statutory right. Ryan procured expert legal guidance and was able to make an informed judgement and deal with the matter and readily saleable.
Last Winter we were e-mailed by Ms Katherine Williams , who moved into a one bedroom flat in Hadleigh in June 1999. We are asked if we could approximate the compensation to the landlord would likely be for a 90 year lease extension. Comparable premises in Hadleigh with a long lease were in the region of £300,000. The mid-range ground rent payable was £50 collected quarterly. The lease elapsed in 2101. Taking into account 76 years as a residual term we calculated the compensation to the freeholder to extend the lease to be within £8,600 and £9,800 plus expenses.
Mr R Reed acquired a studio apartment in Hadleigh in February 2008. The question was if we could shed any light on how much (approximately) premium could be to extend the lease by an additional years. Comparable residencies in Hadleigh with an extended lease were valued about £257,800. The average ground rent payable was £65 invoiced yearly. The lease concluded in 2090. Considering the 65 years as a residual term we approximated the compensation to the freeholder to extend the lease to be within £18,100 and £20,800 not including expenses.