With a residential leasehold property in Hoddesdon, you are actually purchasing an entitlement to reside in a property for a set period of time. Modern flat leases typically tend to be for 99 years or 125. Many leasehold owners become complacent as this seems like a long period of time, you may think about a lease extension sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease gets disproportionately more expensive notably when there are less than eighty years remaining. Residents in Hoddesdon with a lease drawing near to 81 years left should seriously think of extending it without delay. Once the lease term has under eighty years remaining, under the relevant Act the landlord can calculate and demand a greater premium, assessed on a technical multiplication, known as “marriage value” which is due.
Leasehold properties in Hoddesdon with over one hundred years remaining on the lease are sometimes regarded as a ‘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 purchasing the freehold unless savings on ground rent and maintenance charges merit 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. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| 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. |
Irrespective of whether you are a tenant or a freeholder in Hoddesdon,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Hoddesdon valuers.
During the course of the last few months Jayden, came dangerously near to the 80-year threshold with the lease on his purpose- built flat in Hoddesdon. Having bought his flat two decades ago, the unexpired term was of little significance. by good luck, it dawned on him that he needed to take action soon on a lease extension. Jayden arranged for a lease extension at the eleventh hour last May. Jayden and the freeholder subsequently agreed on an amount of £6,000 . If he not met the deadline, the premium would have escalated by a minimum £850.
Ms U Hill was assigned a lease of a purpose-built apartment in Hoddesdon in November 1999. We are asked if we could estimate the premium would be to prolong the lease by 90 years. Similar premises in Hoddesdon with 100 year plus lease were in the region of £250,000. The mid-range amount of ground rent was £50 billed every twelve months. The lease elapsed on 28 July 2096. Given that there were 70 years outstanding we estimated the premium to the freeholder to extend the lease to be within £9,500 and £11,000 plus costs.
In 2014 we were approached by Mrs N Laurent who, having bought a garden flat in Hoddesdon in November 2008. We are asked if we could approximate the compensation to the landlord would be for a 90 year extension to my lease. Comparable flats in Hoddesdon with a long lease were in the region of £246,800. The mid-range ground rent payable was £60 invoiced per annum. The lease ended on 20 September 2076. Considering the 50 years left we estimated the premium to the landlord for the lease extension to be within £44,700 and £51,600 not including professional charges.