There is no doubt about it a leasehold property in Haverhill is a wasting asset as a result of the shortening lease. If the lease has, beyond 125 years remaining then this decrease may be fractional nevertheless there will become a stage when a lease has under than 80 years left as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the main rational as to why you should extend the lease without delay. Many flat owners in Haverhill will qualify for this right; that being said a lawyer should be able to advise whether you are eligible for a lease extension. In limited situations you may not qualify, the most common reason being that you have owned the property for less than two years.
It is conventional wisdom that a residential leasehold with in excess of one hundred years remaining is worth roughly the same as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be worth the same as a freehold for decades to come.
| 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. |
| 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. |
| Halifax | 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:
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The conveyancing solicitors that we work with undertake Haverhill 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 lawyer we work with provide it.
Off the back of lengthy negotiations with the landlord of her ground floor flat in Haverhill, Jordan commenced the lease extension process as the eighty year deadline was quickly coming. The lease extension was finalised in October 2013. The freeholder’s fees were kept to an absolute minimum.
Last Christmas we were e-mailed by Dr Stanley Adams , who was assigned a lease of a studio flat in Haverhill in September 2005. We are asked if we could estimate the price could be for a ninety year extension to my lease. Comparable homes in Haverhill with a long lease were worth £200,000. The mid-range ground rent payable was £50 billed per annum. The lease lapsed in 2103. Considering the 77 years left we approximated the premium to the landlord for the lease extension to be within £8,600 and £9,800 not including expenses.
Last May we were e-mailed by Mrs Jordan Mercier , who was assigned a lease of a one bedroom apartment in Haverhill in February 1997. The question was if we could shed any light on how much (roughly) compensation to the landlord could be to extend the lease by 90 years. Comparable premises in Haverhill with a long lease were valued around £265,200. The average amount of ground rent was £65 invoiced every twelve months. The lease lapsed in 2092. Considering the 66 years unexpired we estimated the compensation to the landlord to extend the lease to be within £15,200 and £17,600 not including costs.