Chaddesden leases on residential properties are gradually losing value. if your lease has in the region of 90 years unexpired, you should start considering the need for a lease extension. If lease term falls under eighty years, you will then have to pay 50% of the property's 'marriage value' on top of the standard cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Flat owners in Chaddesden will usually be legally entitled to a lease extension; however It would be wise to check with a lawyer to check your eligibility. In certain situations you may not qualify. There are also strict deadlines and procedures to follow once the process has commenced so it’s best to be guided by a conveyancer during the process.
It is generally accepted that a property with in excess of 100 years remaining is worth roughly the equivalent as a freehold. Where an further ninety years added to any lease with more than 45 years left, the premises will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| 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 |
| Yorkshire 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. |
Irrespective of whether you are a tenant or a landlord in Chaddesden,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Chaddesden valuers.
Last Christmas Harvey, started to get near to the 80-year threshold with the lease on his leasehold flat in Chaddesden. Having purchased his property twenty years ago, the length of the lease was of no importance. Fortunately, it dawned on him that he needed to take steps soon on a lease extension. Harvey arranged for a lease extension at the eleventh hour last June. Harvey and the freeholder eventually agreed on a premium of £5,500 . If he not met the deadline, the premium would have escalated by a minimum £975.
Mrs Grace Rivera bought a studio apartment in Chaddesden in April 2010. We are asked if we could shed any light on how much (approximately) compensation to the landlord would likely be for a ninety year extension to my lease. Similar residencies in Chaddesden with a long lease were in the region of £200,800. The average amount of ground rent was £65 collected every twelve months. The lease ran out on 13 May 2086. Having 60 years unexpired we estimated the premium to the freeholder for the lease extension to be between £20,900 and £24,200 plus legals.
Dr Nathaniel Rose moved into a garden flat in Chaddesden in November 2003. The dilemma was if we could shed any light on how much (approximately) price would be to extend the lease by 90 years. Identical residencies in Chaddesden with 100 year plus lease were worth £255,000. The average amount of ground rent was £50 billed every twelve months. The lease terminated on 4 July 2097. Considering the 71 years left we approximated the compensation to the freeholder to extend the lease to be between £9,500 and £11,000 exclusive of legals.