On the balance of probabilities if you own a flat in Hadleigh you actually own a long leasehold interest over your property
It is conventional wisdom that a residential leasehold with more than 100 years remaining is worth approximately the same as a freehold. Where an additional 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 |
|---|---|
| Accord Mortgages | 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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. |
Irrespective of whether you are a tenant or a landlord in Hadleigh,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 Hadleigh valuers.
In the wake of 6 months of protracted correspondence with the freeholder of her one bedroom flat in Hadleigh, Aimee commenced the lease extension process just as the lease was nearing the all-important eighty-year threshold. The legal work completed in November 2009. The landlord’s fees were restricted to approximately 500 pounds.
In 2009 we were e-mailed by Mr and Mrs. Y González who, having was assigned a lease of a newly refurbished apartment in Hadleigh in April 2009. The dilemma was if we could shed any light on how much (roughly) price would be to prolong the lease by an additional years. Identical residencies in Hadleigh with 100 year plus lease were in the region of £208,600. The mid-range ground rent payable was £60 invoiced yearly. The lease came to a finish in 2082. Given that there were 57 years as a residual term we calculated the premium to the freeholder for the lease extension to be between £30,400 and £35,200 not including legals.
Last Winter we were contacted by Mr Connor Campbell , who took over the lease of a first floor flat in Hadleigh in July 2006. The question was if we could approximate the premium could be to prolong the lease by 90 years. Similar residencies in Hadleigh with an extended lease were in the region of £200,000. The mid-range ground rent payable was £50 billed quarterly. The lease came to a finish in 2102. Considering the 77 years as a residual term we approximated the compensation to the landlord to extend the lease to be between £8,600 and £9,800 plus legals.