Much Hadham residential property held on a long lease is a wasting asset because a leaseholder only owns the property for a set term.
It is conventional wisdom that a property with more than one hundred years unexpired lease term is worth approximately the same as a freehold. Where an further 90 years added to any lease with more than 30 years unexpired, the property will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Much Hadham can be a difficult process. We recommend you secure guidance from a lawyer and valuer with experience in lease extensions.
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 Much Hadham lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
After protracted discussions with the landlord of her first floor apartment in Much Hadham, Robyn started the lease extension process as the 80 year threshold was fast approaching. The legal work completed in August 2007. The freeholder’s fees were kept to an absolute minimum.
Dr Harrison Young acquired a recently refurbished flat in Much Hadham in August 2002. We are asked if we could estimate the premium could be for a 90 year lease extension. Comparable homes in Much Hadham with 100 year plus lease were in the region of £205,000. The mid-range amount of ground rent was £50 invoiced yearly. The lease elapsed on 5 October 2104. Considering the 79 years as a residual term we estimated the compensation to the freeholder to extend the lease to be between £8,600 and £9,800 plus legals.
Ms Y Thomas acquired a first floor flat in Much Hadham in August 1998. The dilemma was if we could estimate the premium could be to prolong the lease by an additional years. Identical homes in Much Hadham with a long lease were in the region of £275,000. The average ground rent payable was £65 invoiced quarterly. The lease concluded on 21 February 2093. Given that there were 68 years left we estimated the premium to the freeholder for the lease extension to be between £13,300 and £15,400 exclusive of legals.