The re-sale value of a leasehold property in Chaddesden depends on how many years the lease has left to run. If it is close to or fewer than 80 years you should anticipate difficulties on re-sale, so it is advisable to arrange for a lease extension prior to purchasing. It is preferable to start the lease extension process when the lease still has 82 years remaining so that all matters can be concluded ahead of the eighty year threshold. Current legislation entitles Chaddesden qualifying lessees to a 90 year extension added to their remaining lease term (ie if your lease has 50 years remaining the statutory lease extension will provide a new term of 140 years). The intention of the valuation is to determine the premium payable by the lessee to the freeholder for the purchase of the lease extension.
It is generally considered that a residential leasehold with over one hundred years unexpired lease term is worth roughly 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 |
|---|---|
| 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. |
| 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. |
| 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 |
| 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 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.
In 2014 Leon, started to get close to the eighty-year mark with the lease on his one bedroom flat in Chaddesden. In buying his property two decades ago, the lease term was of minimal bearing. Luckily, he noticed he needed to take action soon on a lease extension. Leon extended the lease just under the wire last April. Leon and the freeholder via the managing agents in the end settled on a premium of £5,000 . If the lease had slid to less than eighty years, the figure would have gone up by a minimum £1,100.
In 2011 we were approached by Dr F López who, having acquired a garden apartment in Chaddesden in February 1999. The dilemma was if we could approximate the premium would be to prolong the lease by an additional years. Comparative residencies in Chaddesden with a long lease were in the region of £246,800. The average amount of ground rent was £60 billed per annum. The lease ended in 2075. Considering the 50 years remaining we calculated the premium to the landlord to extend the lease to be within £44,700 and £51,600 not including costs.
Ms F Bonnet completed a one bedroom flat in Chaddesden in January 2000. The question was if we could approximate the premium would be to prolong the lease by ninety years. Comparative residencies in Chaddesden with a long lease were worth £208,200. The average ground rent payable was £65 collected every twelve months. The lease lapsed on 2 March 2086. Considering the 61 years unexpired we calculated the compensation to the freeholder to extend the lease to be within £20,000 and £23,000 not including legals.