Unfortunately that a Haddenham residential lease is a wasting asset. The lease value reduces in proportion to its lease length. The extent of this is taken for granted in the first few years due to the loss of value being disguised by increases in the Haddenham property prices.Where your lease has approximately 90 years left, you should start thinking about a lease extension. If the number of years remaining dips under 80 years, you will end up paying half of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add the property The majority of flat owners in Haddenham will be able to extend under the legislation; however a lawyer will be able to confirm if you qualify for an extension. In some situations you may not qualify. There are also strict timeframes and procedures to be adhered to once the process has commenced and you will need to be guided by your lawyer for the duration of the process.
It is generally accepted that a residential leasehold with more than 100 years remaining is worth approximately the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the property will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | 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 landlord in Haddenham,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Haddenham valuers.
Last Winter Milo, started to get near to the 80-year threshold with the lease on his first floor flat in Haddenham. In buying his flat twenty years previously, the length of the lease was of no interest. Fortunately, he noticed he needed to take steps soon on a lease extension. Milo was able to extend his lease at the eleventh hour in June. Milo and the landlord in the end settled on the final figure of £5,500 . If he not met the deadline, the price would have become more costly by a minimum £1,025.
Last July we were phoned by Mr and Mrs. S Johnson , who completed a basement apartment in Haddenham in July 2001. We are asked if we could approximate the price could be for a 90 year extension to my lease. Identical flats in Haddenham with a long lease were valued around £233,200. The mid-range amount of ground rent was £60 billed quarterly. The lease ran out on 12 January 2085. Considering the 61 years left we approximated the premium to the landlord to extend the lease to be between £22,800 and £26,400 not including legals.
In 2014 we were called by Mr and Mrs. I Baker who, having purchased a basement flat in Haddenham in September 2006. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord could be to extend the lease by 90 years. Identical properties in Haddenham with 100 year plus lease were valued about £166,800. The mid-range ground rent payable was £50 billed annually. The lease finished on 24 February 2074. Having 50 years outstanding we estimated the compensation to the landlord to extend the lease to be within £32,300 and £37,400 plus legals.