Owning a apartment usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. your lease will ordinarily be granted for a set period of time , usually 99 or 125 years, although we have seen longer and shorter terms in Hadley Wood. Clearly, the period of lease remaining shortens as time goes by. This is often ignored and only becomes a problem when the flat or house has to be disposed of or re-mortgaged. The shorter the lease the lower the value of the property and the more it will cost to extend the lease. Eligible leaseholders in Hadley Wood have the legal entitlement to extend the lease for an additional 90 years in accordance with statute. Do give due attention before delaying your Hadley Wood lease extension. Holding off the cost now likely increases the price you will ultimately have to pay to extend your lease
It is conventional wisdom that a residential leasehold with more than one hundred years unexpired lease term is worth roughly the same as a freehold. Where an further 90 years added to any lease with more than 35 years remaining, the property will be worth the same as a freehold for many years in the future.
| 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Godiva Mortgages | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| 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:
|
The conveyancers that we work with procure Hadley Wood lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
Off the back of protracted correspondence with the freeholder of her leasehold flat in Hadley Wood, Poppy started the lease extension process just as the lease was nearing the critical 80-year deadline. The transaction was concluded in June 2006. The landlord’s charges were negotiated to under 600 GBP.
In 2012 we were approached by Mr and Mrs. Y Lambert who, having acquired a one bedroom flat in Hadley Wood in September 1996. The dilemma was if we could shed any light on how much (approximately) price would likely be for a 90 year lease extension. Comparative properties in Hadley Wood with an extended lease were valued around £191,000. The average amount of ground rent was £65 invoiced yearly. The lease concluded in 2084. Taking into account 58 years outstanding we calculated the premium to the landlord to extend the lease to be between £23,800 and £27,400 exclusive of costs.
An example of a Lease Extension matter before the tribunal for a Hadley Wood flat 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.