It’s an underpublicised truth that a Haverhill residential lease is a deteriorating asset. As the lease term diminishes so does the value of the property. The extent of this is taken for granted in the first few years due to the depreciation being disguised by increases in the Haverhill property prices.Once your lease gets to 85ish years, you need to start considering a lease extension. If lease term dips below 80 years, you will then be required to pay half of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add the property Most flat owners in Haverhill will be able to extend under the legislation; however a conveyancing solicitor will be able to confirm whether you are eligibility. In some cases you may not qualify. There are also strict timetables and procedures to follow once the process has commenced and you will need to be guided by your conveyancing solicitor from beginning to end of the process.
Leasehold properties in Haverhill with more than one hundred years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in buying the freehold unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Coventry Building Society | |
| Godiva Mortgages | |
| Skipton Building Society | |
| The Mortgage Works | |
| Virgin |
Regardless of whether you are a tenant or a freeholder in Haverhill,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Haverhill valuers.
Two years ago Dylan, started to get close to the eighty-year threshold with the lease on his purpose- built apartment in Haverhill. In buying his home 19 years previously, the lease term was of little significance. Fortunately, he realised he needed to take action soon on a lease extension. Dylan extended the lease at the eleventh hour last March. Dylan and the freeholder via the managing agents in the end agreed on the final figure of £6,000 . If the lease had slid below eighty years, the figure would have increased by at least £1,150.
In 2012 we were contacted by Mr and Mrs. T Laurent who, having bought a one bedroom apartment in Haverhill in August 2009. The question was if we could shed any light on how much (roughly) compensation to the landlord would likely be to prolong the lease by an additional years. Comparative homes in Haverhill with 100 year plus lease were in the region of £257,800. The mid-range amount of ground rent was £65 collected every twelve months. The lease elapsed in 2091. Considering the 65 years outstanding we calculated the compensation to the freeholder for the lease extension to be between £18,100 and £20,800 plus legals.
In 2013 we were approached by Dr Kirsty Dupont who, having was assigned a lease of a one bedroom flat in Haverhill in January 2000. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be to prolong the lease by an additional years. Comparable premises in Haverhill with a long lease were valued about £191,400. The mid-range ground rent payable was £55 collected quarterly. The lease finished in 2080. Considering the 54 years unexpired we calculated the premium to the freeholder to extend the lease to be between £34,200 and £39,600 not including professional charges.