Hadley Wood residential property held on a long lease is a depreciating asset as the leaseholder only owns the property for a set term.
Leasehold properties in Hadley Wood with over 100 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 situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and maintenance 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. |
| Halifax | Minimum 70 years from the date 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 |
Lease extensions in Hadley Wood can be a difficult process. We recommend you procure professional help from a lawyer and surveyor with experience in this area.
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.
Liam was the the leasehold proprietor of a high value flat in Hadley Wood being sold with a lease of just over 61 years left. Liam informally spoke with his freeholder a well known local-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years on the basis of an increased rent to £50 yearly. Ordinarily, ground rent would not be payable on a lease extension were Liam to invoke his statutory right. Liam procured expert legal guidance and was able to make a more informed judgement and handle with the matter and ending up with a market value flat.
In 2014 we were contacted by Mr and Mrs. W Rose who, having completed a garden flat in Hadley Wood in May 2004. We are asked if we could estimate the compensation to the landlord would be to prolong the lease by 90 years. Comparative homes in Hadley Wood with an extended lease were in the region of £200,800. The mid-range amount of ground rent was £65 collected annually. The lease elapsed on 11 July 2086. Considering the 60 years remaining we estimated the premium to the landlord for the lease extension to be within £20,900 and £24,200 not including legals.
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 affected 1 flat. The unexpired term was 76 years.