Hadley Wood leases on domestic deteriorating in value. Where your lease has about 90 years unexpired, you should start considering the need for a lease extension. Eighty years is a significant number: when the remaining term of a lease drops below this level then you begin paying an additional element called marriage value. Flat owners in Hadley Wood will mostly be legally entitled to a lease extension; however a solicitor should be able check if you qualify. In certain circumstances you may not be entitled. There are prescribed timetables and procedures to follow once the process is triggered so it’s wise to be guided by a conveyancing solicitor during the process.
It is generally considered that a residential leasehold with more than one hundred years remaining is worth roughly the same as a freehold. Where an further 90 years added to any lease with more than 35 years unexpired, the property will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset 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. |
| 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 |
| 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. |
Regardless of whether you are a tenant or a landlord in Hadley Wood,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 in-depth market knowledge and the close ties they enjoy with Hadley Wood valuers.
In the wake of 6 months of protracted negotiations with the landlord of her leasehold apartment in Hadley Wood, Erin initiated the lease extension process as the eighty year deadline was rapidly approaching. The transaction was concluded in November 2005. The landlord’s charges were negotiated to slightly above four hundred GBP.
In 2010 we were e-mailed by Ms N Johnson who, having completed a ground floor apartment in Hadley Wood in April 2008. We are asked if we could approximate the price could be for a 90 year extension to my lease. Similar properties in Hadley Wood with 100 year plus lease were valued about £290,000. The mid-range amount of ground rent was £60 invoiced monthly. The lease termination date was on 15 February 2105. Taking into account 80 years left we calculated the premium to the landlord to extend the lease to be within £13,300 and £15,400 exclusive of costs.
An example of a Lease Extension case for a Hadley Wood premises 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 affected 1 flat. The number of years remaining on the existing lease(s) was 76 years.