Hadley Wood leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease becomes more expensive. Legislation has been in place for sometime now which permits qualifying Hadley Wood residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Hadley Wood you must see if your lease has between 70 and 90 years remaining. In particular once the remaining lease term slips under eighty years, the cost of any lease extension increases dramatically as part of the premium you pay is what is known as a marriage value
Leasehold residencies in Hadley Wood with in excess of 100 years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and estate charges warrant 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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 solicitors 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.
Trailing protracted correspondence with the freeholder of her garden flat in Hadley Wood, Alexandra initiated the lease extension process as the eighty year deadline was swiftly nearing. The lease extension was concluded in March 2014. The freeholder’s charges were kept to an absolute minimum.
Last Spring we were called by Ms A Howard , who owned a basement flat in Hadley Wood in March 1995. The dilemma was if we could approximate the price would likely be to extend the lease by ninety years. Identical premises in Hadley Wood with 100 year plus lease were valued about £176,200. The mid-range ground rent payable was £65 billed monthly. The lease lapsed in 2082. Having 56 years left we calculated the compensation to the freeholder for the lease extension to be within £29,500 and £34,000 not including professional charges.
An example of a Lease Extension case for a Hadley Wood residence 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 unexpired term as at the valuation date was 76 years.