There is no doubt about it a leasehold flat or house in West Haddon is a wasting asset as a result of the shortening lease. If the lease has, beyond one hundred years to run then this decrease may be of little impact nevertheless there will become a point in time when a lease has fewer than 80 years remaining as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the main reason why you should extend the lease without delay. Most flat owners in West Haddon will qualify for this right; however a lawyer should be able to advise if you qualify for a lease extension. In certain situations you may not qualify, the most common reason being that you have owned the property for under two years.
Leasehold premises in West Haddon with over 100 years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little upside in buying the freehold unless savings on ground rent and service charges warrant it.
| 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| 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 |
Irrespective of whether you are a tenant or a landlord in West Haddon,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with West Haddon valuers.
Harrison was the the leasehold proprietor of a 2 bedroom apartment in West Haddon being sold with a lease of fraction over 59 years outstanding. Harrison on an informal basis contacted his landlord a well known Bristol-based freehold company for a lease extension. The freeholder was prepared to agree an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £125 per annum. No ground rent would be payable on a lease extension were Harrison to exercise his statutory right. Harrison obtained expert legal guidance and secured satisfactory resolution without resorting to tribunal and ending up with a market value flat.
Mrs Natalie Rose owned a basement apartment in West Haddon in September 2009. The question was if we could shed any light on how much (roughly) premium would likely be for a ninety year lease extension. Identical flats in West Haddon with 100 year plus lease were worth £200,000. The mid-range amount of ground rent was £50 collected annually. The lease lapsed in 2103. Having 78 years as a residual term we estimated the compensation to the landlord to extend the lease to be within £8,600 and £9,800 exclusive of expenses.
In 2009 we were approached by Mr Hugo Hernández who, having was assigned a lease of a newly refurbished apartment in West Haddon in July 2000. The dilemma was if we could approximate the price could be to prolong the lease by 90 years. Identical residencies in West Haddon with an extended lease were worth £267,600. The average ground rent payable was £65 invoiced monthly. The lease elapsed on 12 October 2092. Taking into account 67 years outstanding we calculated the premium to the freeholder for the lease extension to be within £14,300 and £16,400 plus costs.