The re-sale value of a leasehold property in Haddenham depends on how long the lease has left to run. If it is close to or fewer than eighty years you should envisage problems on re-sale, so it is recommended to arrange for a lease extension prior to purchasing. It is preferable to start the process of extending the lease is when the lease still has 82 years unexpired so that all matters can be concluded prior to the eighty year cut off point. Current legislation enables Haddenham qualifying lessees to obtain a lease extension of ninety years in addition to the remaining length of the lease at a peppercorn rent (that is, rent free). The reason of the valuation is to arrive at an opinion of the premium payable by the lessee to the freeholder for the purchase of the lease extension.
Leasehold premises in Haddenham with over one hundred years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Chelsea Building Society | |
| Godiva Mortgages | |
| Leeds Building Society | |
| Skipton Building Society |
Lease extensions in Haddenham can be a difficult process. We recommend you get professional help from a conveyancing solicitor and surveyor well versed in the legislation and lease extension process.
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 Haddenham lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In recent months Adam, came very near to the 80-year mark with the lease on his studio flat in Haddenham. In buying his flat 19 years previously, the length of the lease was of no bearing. Thankfully, he recognised he would imminently be paying way over the odds for Extending the lease. Adam arranged for a lease extension just in the nick of time in April. Adam and the landlord subsequently agreed on an amount of £6,000 . If he had missed the deadline, the sum would have gone up by a minimum £1,100.
In 2010 we were contacted by Dr R Reed who, having completed a garden apartment in Haddenham in February 1996. The question was if we could shed any light on how much (approximately) compensation to the landlord would be for a 90 year extension to my lease. Comparable premises in Haddenham with a long lease were worth £216,000. The mid-range amount of ground rent was £60 billed monthly. The lease elapsed on 21 July 2084. Given that there were 58 years left we estimated the premium to the landlord to extend the lease to be within £28,500 and £33,000 exclusive of legals.
Last month we were contacted by Dr O Lefebvre , who moved into a ground floor flat in Haddenham in May 2010. We are asked if we could estimate the premium could be for a 90 year lease extension. Similar premises in Haddenham with an extended lease were valued about £200,000. The average amount of ground rent was £50 invoiced monthly. The lease expired in 2104. Having 78 years unexpired we calculated the premium to the landlord for the lease extension to be between £8,600 and £9,800 exclusive of costs.