With a long leasehold premises in Hadley Wood, you are in fact renting it for a certain amount of time. These days flat leases typically tend to be for 99 years or 125. Many leasehold owners become complacent as this seems like a long period of time, you may consider extending the lease sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease gets disproportionately more expensive particularly once there are fewer than eighty years left. Residents in Hadley Wood with a lease approaching 81 years unexpired should seriously think of extending it sooner as opposed to later. When the lease term has under eighty years left, under the current statute the freeholder is entitled to calculate and demand a greater premium, based on a technical calculation, known as “marriage value” which is due.
Leasehold premises in Hadley Wood with in excess of one hundred years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and estate charges justify it.
| 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| 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 |
Irrespective of whether you are a tenant or a landlord in Hadley Wood,the lease extension experts that we work with will always be prepared 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.
After unsuccessful negotiations with the landlord of her leasehold flat in Hadley Wood, Georgia started the lease extension process just as her lease was coming close to the all-important 80-year mark. The lease extension was finalised in February 2006. The landlord’s charges were kept to an absolute minimum.
Dr A Bailey bought a studio apartment in Hadley Wood in April 1999. We are asked if we could estimate the premium would likely be to extend the lease by a further 90 years. Identical properties in Hadley Wood with an extended lease were in the region of £210,600. The mid-range amount of ground rent was £45 collected per annum. The lease ended in 2088. Considering the 62 years as a residual term we calculated the premium to the freeholder to extend the lease to be within £18,100 and £20,800 exclusive of professional charges.
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 was in relation to 1 flat. The unexpired term was 76 years.