Hoddesdon leases on domestic properties are gradually losing value. if your lease has about ninety years unexpired, you should start thinking about a lease extension. If lease term is under eighty years, you will then have to pay half of the property's 'marriage value' on top of the standard cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Flat owners in Hoddesdon will usually be legally entitled to a lease extension; however it’s a good idea to check with a conveyancing solicitor to confirm if you qualify. In some circumstances you may not qualify. There are prescribed deadlines and procedures to follow once the process has commenced so it’s prudent to be guided by a lawyer during the process.
Leasehold residencies in Hoddesdon with over one hundred years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and maintenance charges warrant 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Lloyds TSB Scotland | Minimum 70 years from the date 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. |
Lease extensions in Hoddesdon can be a difficult process. We recommend you secure guidance from a lawyer and valuer well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience procuring Hoddesdon lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Eliot owned a conversion apartment in Hoddesdon being sold with a lease of just over 72 years left. Eliot informally contacted his freeholder being a well known Bristol-based freehold company for a lease extension. The landlord was prepared to agree an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £200 yearly. No ground rent would be payable on a lease extension were Eliot to invoke his statutory right. Eliot obtained expert legal guidance and secured satisfactory resolution informally and sell the flat.
In 2009 we were approached by Dr Bethany Dupont who, having bought a one bedroom apartment in Hoddesdon in January 1999. We are asked if we could shed any light on how much (roughly) compensation to the landlord could be to extend the lease by a further 90 years. Similar homes in Hoddesdon with a long lease were valued around £245,000. The average ground rent payable was £50 billed monthly. The lease concluded in 2093. Taking into account 68 years outstanding we estimated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 plus fees.
Last Summer we were approach by Mr and Mrs. R Gunderson , who purchased a garden flat in Hoddesdon in July 1998. The dilemma was if we could shed any light on how much (roughly) price would be for a 90 year lease extension. Similar homes in Hoddesdon with an extended lease were in the region of £285,000. The average amount of ground rent was £55 collected annually. The lease concluded on 15 January 2104. Having 79 years unexpired we approximated the premium to the landlord to extend the lease to be within £13,300 and £15,400 plus fees.