The market value of a leasehold property in Wheathampstead depends on how long the lease has left to run. If it is close to or less than eighty years you should anticipate problems on re-sale, so it is advisable to arrange for the lease to be extended ahead of buying. It is preferable to start the process of extending the lease is when a lease still has 82 years to run so that a lease extension can be addressed well before the 80 year cut off point. Statute entitles Wheathampstead qualifying lessees to obtain a lease extension of 90 years in addition to the remaining lease term at a peppercorn rent (that is, rent free). The intention of the valuation is to determine the amount payable by the lessee to the freeholder for the acquisition of the lease extension.
It is conventional wisdom that a residential leasehold with over one hundred years unexpired lease term is worth approximately the same as a freehold. Where an additional ninety years added to all but the shortest lease, the residence 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; |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start 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 |
Lease extensions in Wheathampstead can be a difficult process. We recommend you obtain professional help from a conveyancing solicitor 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 dealing with Wheathampstead lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Aiden was the the leasehold proprietor of a high value apartment in Wheathampstead on the market with a lease of fraction over 61 years remaining. Aiden informally contacted his landlord a well known London-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of an increased rent to £200 per annum. No ground rent would be payable on a lease extension were Aiden to exercise his statutory right. Aiden procured expert legal guidance and secured satisfactory deal informally and readily saleable.
Mrs T Laurent completed a purpose-built apartment in Wheathampstead in February 2010. The dilemma was if we could estimate the price would be to prolong the lease by 90 years. Comparative homes in Wheathampstead with an extended lease were valued about £290,000. The average amount of ground rent was £45 billed annually. The lease ran out in 2098. Having 73 years remaining we estimated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 not including fees.
In 2010 we were e-mailed by Mr I Mason who, having bought a one bedroom flat in Wheathampstead in August 2006. We are asked if we could approximate the compensation to the landlord would likely be for a 90 year lease extension. Comparative premises in Wheathampstead with 100 year plus lease were worth £235,600. The mid-range ground rent payable was £60 billed yearly. The lease ended in 2087. Considering the 62 years as a residual term we estimated the premium to the freeholder for the lease extension to be within £21,900 and £25,200 exclusive of fees.