It’s a harsh certainty 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 depreciation being disguised by increases in the Chaddesden property market.Where your lease has approximately ninety years left, you should start thinking about a lease extension. If lease term slips under eighty years, you will end up paying half of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add the property Most leasehold owners in Chaddesden will be able to extend under the legislation; however a conveyancer will be able to clarify whether you are eligibility. In some situations you may not qualify. There are also strict timetables and procedures to follow once the process is initiated and you will need to be guided by your conveyancer for the duration of the formalities.
Leasehold premises in Chaddesden with over 100 years outstanding 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 home. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| 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. |
Lease extensions in Chaddesden can be a difficult process. We recommend you procure professional help from a conveyancer and valuer with experience in this area.
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 procuring Chaddesden lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Subsequent to protracted correspondence with the freeholder of her first floor apartment in Chaddesden, Danielle started the lease extension process as the eighty year deadline was quickly coming. The lease extension was concluded in March 2011. The freeholder’s charges were negotiated to less than 500 pounds.
Mr and Mrs. V Peterson took over the lease of a studio flat in Chaddesden in March 2008. We are asked if we could estimate the compensation to the landlord could be for a ninety year lease extension. Comparable properties in Chaddesden with a long lease were worth £280,000. The average ground rent payable was £55 billed per annum. The lease concluded on 14 January 2102. Given that there were 77 years left we estimated the compensation to the freeholder to extend the lease to be within £13,300 and £15,400 plus costs.
In 2010 we were called by Mr T Adams who, having acquired a one bedroom apartment in Chaddesden in July 1995. The question was if we could estimate the compensation to the landlord would likely be for a 90 year lease extension. Comparative residencies in Chaddesden with an extended lease were valued about £183,600. The mid-range ground rent payable was £65 billed every twelve months. The lease terminated in 2082. Considering the 57 years remaining we calculated the premium to the freeholder to extend the lease to be between £28,500 and £33,000 not including legals.