The market value of a leasehold property in Much Hadham depends on how long the lease has left to run. If it is close to or less than 80 years you should foresee problems on re-sale, so it is recommended to arrange for the lease to be extended ahead of buying. Ideally one should start the lease extension process when the lease still has 82 years to run so that formalities can be addressed prior to the eighty year threshold. Statute entitles Much Hadham qualifying lessees to obtain a new lease which will be for the balance of the existing lease plus a supplemental term of ninety years. The reason of the valuation is to arrive at an opinion of the premium payable by the lessee to the freeholder for the purchase of the lease extension.
Leasehold premises in Much Hadham with more than one hundred years left on the lease are often 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 upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Halifax | 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Regardless of whether you are a tenant or a freeholder in Much Hadham,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Much Hadham valuers.
During the course of the last few months Jamie, started to get near to the 80-year threshold with the lease on his purpose- built flat in Much Hadham. Having purchased his home twenty years ago, the unexpired term was of little importance. Thankfully, he noticed he would imminently be paying an escalated premium for a lease extension. Jamie extended the lease just under the wire in September. Jamie and the freeholder eventually settled on sum of £5,000 . If the lease had descended to less than eighty years, the price would have become more costly by at least £1,125.
Last Christmas we were contacted by Mr and Mrs. O Anderson , who acquired a studio flat in Much Hadham in February 2002. The question was if we could approximate the price could be to extend the lease by a further 90 years. Comparable properties in Much Hadham with 100 year plus lease were worth £290,000. The mid-range ground rent payable was £45 collected per annum. The lease expired on 8 April 2098. Taking into account 72 years as a residual term we approximated the premium to the freeholder to extend the lease to be between £11,400 and £13,200 not including expenses.
Ms W Phillips was assigned a lease of a first floor apartment in Much Hadham in September 2012. We are asked if we could shed any light on how much (approximately) compensation to the landlord could be to prolong the lease by 90 years. Similar flats in Much Hadham with a long lease were valued around £233,200. The average ground rent payable was £60 collected quarterly. The lease ended in 2087. Given that there were 61 years outstanding we calculated the premium to the landlord for the lease extension to be within £22,800 and £26,400 exclusive of fees.