With a long leasehold premises in Much Hadham, you are actually purchasing an entitlement to reside in a property for a prescribed time frame. In recent years flat leases typically tend to be for 99 years or 125. Many leasehold owners are unconcerned as this seems like a long period of time, you may think about a lease extension sooner rather than later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly especially when there are fewer than 80 years left. Anyone in Much Hadham with a lease drawing near to 81 years left should seriously think of extending it as soon as possible. Once the lease term has less than eighty years remaining, under the current statute the freeholder can calculate and demand a larger premium, based on a technical calculation, known as “marriage value” which is payable.
It is conventional wisdom that a property with over one hundred years remaining is worth approximately the equivalent as a freehold. Where an additional 90 years added to any lease with more than 45 years remaining, the property will be worth the same as a freehold for many years in the future.
| 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. |
| 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. |
The lawyers that we work with handle Much Hadham 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 conveyancing solicitor we work with provide it.
14 months ago Logan, came precariously near to the eighty-year threshold with the lease on his ground floor apartment in Much Hadham. Having bought his flat two decades ago, the unexpired term was of little significance. As luck would have it, it dawned on him that he would imminently be paying an inflated amount for Extending the lease. Logan was able to extend his lease just under the wire last May. Logan and the landlord eventually settled on a premium of £6,000 . If the lease had dipped below eighty years, the premium would have become more exhorbitant by at least £1,075.
In 2009 we were phoned by Mr and Mrs. L López who, having completed a basement flat in Much Hadham in May 2009. The dilemma was if we could estimate the premium could be for a ninety year extension to my lease. Comparable premises in Much Hadham with an extended lease were in the region of £248,000. The average amount of ground rent was £65 invoiced per annum. The lease expired on 15 August 2088. Considering the 63 years left we calculated the premium to the freeholder to extend the lease to be between £20,000 and £23,000 plus expenses.
Dr Chelsea Nelson owned a first floor apartment in Much Hadham in April 1995. The question was if we could shed any light on how much (roughly) premium would likely be for a ninety year extension to my lease. Comparative properties in Much Hadham with a long lease were valued about £181,600. The average amount of ground rent was £55 billed monthly. The lease came to a finish in 2077. Having 52 years outstanding we estimated the premium to the freeholder to extend the lease to be between £30,400 and £35,200 exclusive of fees.