There is no doubt about it a leasehold property in Much Hadham is a wasting asset as a result of the shortening lease. If the residual term has, in excess of 100 years to run then this decrease may be of little impact that being said there will become a point in time when a lease has less than eighty years remaining as part of the premium you will incur is what is known as a marriage value. This could increase sharply the cost. It is the main reason why you should consider extending sooner than later. Most flat owners in Much Hadham will qualify for this right; that being said a conveyancing solicitor can confirm whether you are eligible to extend your lease. In limited situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
It is conventional wisdom that a property with in excess of 100 years remaining is worth roughly the equivalent as a freehold. Where an further ninety years added to any lease with more than 45 years unexpired, the residence will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Retaining our service gives you better control over the value of your Much Hadham leasehold, as your property will be more valuable and saleable in respect of lease length should you want to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Last Christmas Jackson, came very near to the 80-year threshold with the lease on his two bedroom flat in Much Hadham. In buying his property twenty years previously, the unexpired term was of minimal importance. Luckily, he became aware that he would soon be paying way over the odds for Extending the lease. Jackson extended the lease at the eleventh hour in June. Jackson and the landlord in the end settled on the final figure of £5,500 . If he failed to meet the deadline, the premium would have gone up by at least £925.
Last Spring we were contacted by Ms Megan Martinez , who bought a one bedroom apartment in Much Hadham in February 1997. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord could be for a 90 year extension to my lease. Comparable residencies in Much Hadham with a long lease were in the region of £257,800. The average amount of ground rent was £65 collected per annum. The lease ended in 2091. Having 65 years as a residual term we estimated the premium to the freeholder to extend the lease to be within £18,100 and £20,800 exclusive of professional charges.
Mrs Bethan Jones completed a garden apartment in Much Hadham in March 2008. We are asked if we could estimate the compensation to the landlord could be for a ninety year extension to my lease. Identical flats in Much Hadham with an extended lease were valued around £196,400. The average ground rent payable was £55 billed quarterly. The lease lapsed in 2080. Taking into account 54 years remaining we estimated the premium to the landlord for the lease extension to be within £35,200 and £40,600 exclusive of expenses.