The re-sale value of a leasehold property in Hadley Wood is impacted by how many years the lease has left to run. If it is near to or fewer than eighty years you should expect problems on re-sale, so it is advisable to arrange for a lease extension prior to purchasing. It is preferable to start the lease extension process when the lease still has 82 years remaining so that formalities can be addressed well before the 80 year cut off point. Statute entitles Hadley Wood qualifying lessees to a ninety year extension added to their remaining lease term (ie if your lease has 50 years left the statutory lease extension will provide a new term of 140 years). The intention of the valuation is to determine the amount payable by the lessee to the freeholder for the purchase of the lease extension.
Leasehold residencies in Hadley Wood with in excess of 100 years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little upside in buying the freehold unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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. |
Lease extensions in Hadley Wood can be a difficult process. We recommend you get professional help from a conveyancing solicitor and surveyor with experience in lease extensions.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge procuring Hadley Wood lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last year Blake, came very near to the 80-year threshold with the lease on his leasehold flat in Hadley Wood. Having bought his property 18 years ago, the unexpired term was of no bearing. Luckily, it dawned on him that he needed to take steps soon on Extending the lease. Blake was able to extend his lease just in the nick of time in June. Blake and the freeholder via the managing agents eventually settled on an amount of £5,000 . If he not met the deadline, the figure would have escalated by at least £1,125.
Mr and Mrs. W Reed purchased a one bedroom apartment in Hadley Wood in June 2001. The dilemma was if we could approximate the price would be for a ninety year lease extension. Similar premises in Hadley Wood with 100 year plus lease were valued around £166,400. The mid-range amount of ground rent was £60 billed every twelve months. The lease lapsed on 27 November 2080. Given that there were 54 years as a residual term we estimated the compensation to the freeholder for the lease extension to be between £32,300 and £37,400 plus expenses.
An example of a Lease Extension decision 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 number of years remaining on the existing lease(s) was 76 years.