When it comes to residential leasehold premises in Hoddesdon, you effectively rent it for a certain amount of time. These days flat leases are usually granted for 99 years or 125. Many leasehold owners become complacent as this seems like a lengthy period of time, you may think about a lease extension sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease increases markedly notably when there are less than eighty years remaining. Leasehold owners in Hoddesdon with a lease nearing 81 years left should seriously think of extending it sooner rather than later. Once a lease has under 80 years left, under the relevant legislation the freeholder is entitled to calculate and levy a greater premium, based on a technical computation, strangely termed as “marriage value” which is payable.
Leasehold properties in Hoddesdon with in excess of 100 years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth 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 service charges merit it.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start 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 |
| 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. |
The lawyers that we work with undertake Hoddesdon 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 conveyancer we work with provide it.
18 months ago Jasper, started to get close to the 80-year threshold with the lease on his garden apartment in Hoddesdon. In buying his home twenty years previously, the length of the lease was of little importance. As luck would have it, it dawned on him that he would soon be paying way over the odds for Extending the lease. Jasper extended the lease at the eleventh hour in June. Jasper and the freeholder in the end settled on an amount of £5,000 . If the lease had dipped lower than eighty years, the amount would have increased by at least £925.
Last Christmas we were phoned by Mr and Mrs. W Alexander , who took over the lease of a basement apartment in Hoddesdon in April 2007. The dilemma was if we could approximate the premium would likely be for a 90 year lease extension. Comparable properties in Hoddesdon with 100 year plus lease were in the region of £176,200. The mid-range amount of ground rent was £65 billed annually. The lease concluded on 10 May 2081. Considering the 56 years outstanding we approximated the compensation to the freeholder to extend the lease to be within £29,500 and £34,000 not including costs.
Mr and Mrs. P Baker purchased a purpose-built apartment in Hoddesdon in June 2000. We are asked if we could approximate the price would likely be to prolong the lease by 90 years. Comparative flats in Hoddesdon with a long lease were valued about £237,600. The average ground rent payable was £45 collected every twelve months. The lease expired in 2092. Given that there were 67 years as a residual term we estimated the premium to the freeholder for the lease extension to be within £11,400 and £13,200 plus fees.