Unfortunately that a Chaddesden residential lease is a wasting asset. The lease value drops in proportion to its lease length. The extent of this is taken for granted in the early years due to the deflation being disguised by increases in the Chaddesden property market.Once your lease nears 85ish years, you should start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease dips under eighty years - otherwise a higher amount will be due. The majority of leasehold owners in Chaddesden will be able to extend under the legislation; however a conveyancing solicitor will be able to confirm whether you are eligibility. In some cases you may not qualify. There are also strict deadlines and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancer for the duration of the formalities.
It is generally considered that a property with more than one hundred years remaining is worth approximately the same as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
Irrespective of whether you are a tenant or a freeholder in Chaddesden,the lease extension lawyers 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 David, started to get near to the eighty-year threshold with the lease on his one bedroom flat in Chaddesden. In buying his home 19 years previously, the lease term was of no concern. Fortunately, he realised he needed to take steps soon on Extending the lease. David was able to extend his lease at the eleventh hour last April. David and the freeholder eventually agreed on an amount of £5,000 . If he had missed the deadline, the sum would have gone up by a minimum £1,150.
Last year we were contacted by Ms Megan Bernard , who acquired a studio apartment in Chaddesden in August 2009. The question was if we could approximate the price could be to extend the lease by an additional years. Comparative flats in Chaddesden with a long lease were valued about £275,000. The mid-range amount of ground rent was £55 invoiced annually. The lease ended in 2101. Considering the 76 years as a residual term we calculated the premium to the landlord for the lease extension to be between £9,500 and £11,000 plus professional charges.
Last year we were called by Mr and Mrs. B Lewis , who completed a one bedroom flat in Chaddesden in January 2006. We are asked if we could shed any light on how much (approximately) premium would be to prolong the lease by 90 years. Comparable properties in Chaddesden with a long lease were in the region of £176,200. The average amount of ground rent was £65 collected monthly. The lease expired in 2081. Having 56 years outstanding we estimated the compensation to the freeholder for the lease extension to be between £29,500 and £34,000 not including fees.