With a long leasehold property in Hadley Wood, you effectively rent it for a certain period of time. These days flat leases typically tend to be for 99 years or 125. Many leasehold owners are unconcerned as this seems like a long period of time, you may consider extending the lease sooner as opposed to later. Accepted thinking is that the shorter the number of years is the cost of extending the lease becomes disproportionately more expensive notably once there are fewer than eighty years remaining. Leasehold owners in Hadley Wood with a lease nearing 81 years unexpired should seriously consider extending it without delay. Once the lease term has below 80 years outstanding, under the relevant Act the landlord can calculate and levy a larger amount, based on a technical computation, known as “marriage value” which is payable.
It is conventional wisdom that a residential leasehold with more than 100 years unexpired lease term is worth approximately the same as a freehold. Where an further ninety years added to all but the shortest lease, the property will be equivalent in value to 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| 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. |
Irrespective of whether you are a tenant or a freeholder in Hadley Wood,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Hadley Wood valuers.
Michael was the the leasehold proprietor of a studio flat in Hadley Wood on the market with a lease of just over 72 years left. Michael informally spoke with his freeholder a well known Manchester-based freehold company for a lease extension. The freeholder was keen to give an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent at the outset set at £100 per annum and increase every twenty five years thereafter. No ground rent would be payable on a lease extension were Michael to invoke his statutory right. Michael procured expert advice and secured an acceptable deal informally and readily saleable.
In 2011 we were e-mailed by Dr I Martin who, having bought a one bedroom flat in Hadley Wood in August 1996. The question was if we could shed any light on how much (roughly) premium would likely be to prolong the lease by an additional years. Comparable residencies in Hadley Wood with 100 year plus lease were valued around £246,800. The mid-range ground rent payable was £60 billed monthly. The lease elapsed in 2076. Having 50 years outstanding we approximated the premium to the landlord for the lease extension to be between £44,700 and £51,600 plus professional charges.
An example of a Lease Extension matter before the tribunal for a Hadley Wood property is Flat 2 2 Netherfield Road in April 2010. The Tribunale held that premium payable for a 90 year extension to the existing Lease should be £7,705. This case related to 1 flat. The unexpired term was 76 years.