Hadley Wood leases on domestic deteriorating in value. if your lease has approximately ninety years left, you should start considering the need for a lease extension. If lease term is under 80 years, you will then have to pay half of the property's 'marriage value' in addition to the standard cost of the lease extension to your landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Flat owners in Hadley Wood will mostly be legally entitled to a lease extension; however it’s a good idea to check with a lawyer to confirm if you qualify. In some circumstances you may not be entitled. There are also strict deadlines and steps to follow once the process has commenced so it’s best to be guided by a conveyancer during the process.
Leasehold properties in Hadley Wood with in excess of one hundred years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Coventry Building Society | 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Irrespective of whether you are a tenant or a freeholder in Hadley Wood,the lease extension experts 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 Hadley Wood valuers.
In 2014 Isaac, came very near to the eighty-year mark with the lease on his leasehold flat in Hadley Wood. In buying his flat two decades ago, the length of the lease was of minimal interest. by good luck, he recognised he would soon be paying way over the odds for a lease extension. Isaac was able to extend his lease just in the nick of time last July. Isaac and the landlord who owned the flat above ultimately settled on the final figure of £5,500 . If he failed to meet the deadline, the sum would have escalated by at least £875.
Last Winter we were e-mailed by Mr L Taylor , who took over the lease of a garden apartment in Hadley Wood in September 2008. The dilemma was if we could approximate the compensation to the landlord would likely be for a 90 year extension to my lease. Similar premises in Hadley Wood with an extended lease were in the region of £255,000. The average ground rent payable was £50 billed annually. The lease ended in 2097. Considering the 71 years outstanding we estimated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 plus fees.
An example of a Lease Extension case for a Hadley Wood premises is Flat 2 2 Netherfield Road in April 2010. The Tribunale held that premium payable for a 90 year extension to the existing Lease should be £7,705. This case affected 1 flat. The unexpired residue of the current lease was 76 years.