The value of Hadleigh leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of extending the lease can increase substantially once the unexpired lease term is below than 80 years
It is conventional wisdom that a residential leasehold with more than 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the residence will be equivalent in value to a freehold for decades to come.
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| Yorkshire 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. |
Using our service will provide you better control over the value of your Hadleigh leasehold, as your property will be more valuable and marketable in respect of lease length should you want to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Last year Henry, came dangerously near to the 80-year mark with the lease on his purpose- built apartment in Hadleigh. In buying his flat 18 years previously, the lease term was of no interest. Thankfully, it dawned on him that he would imminently be paying way over the odds for a lease extension. Henry arranged for a lease extension at the eleventh hour in August. Henry and the landlord who owned the flat above subsequently settled on the final figure of £6,000 . If he not met the deadline, the premium would have gone up by a minimum £975.
Mr B Garcia purchased a garden flat in Hadleigh in July 2007. The dilemma was if we could approximate the price would likely be for a 90 year lease extension. Identical homes in Hadleigh with a long lease were in the region of £198,800. The mid-range ground rent payable was £55 billed annually. The lease ran out on 4 November 2081. Having 55 years unexpired we calculated the compensation to the landlord for the lease extension to be between £33,300 and £38,400 exclusive of professional charges.
Last month we were approach by Mr and Mrs. S Gray , who was assigned a lease of a garden apartment in Hadleigh in August 1996. We are asked if we could shed any light on how much (approximately) compensation to the landlord could be for a ninety year extension to my lease. Similar flats in Hadleigh with a long lease were worth £295,000. The average ground rent payable was £50 collected quarterly. The lease terminated on 17 February 2101. Taking into account 75 years outstanding we approximated the premium to the freeholder to extend the lease to be within £8,600 and £9,800 exclusive of professional charges.