The market value of Chellaston leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of a lease extension can increase materialy once the remaining term is below than eighty years
It is generally accepted that a residential leasehold with in excess of one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the property will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Halifax | 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 be at least 75 years plus the term of the mortgage at the outset 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The conveyancers that we work with procure Chellaston lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
During the course of the last few months Samuel, started to get near to the 80-year threshold with the lease on his first floor flat in Chellaston. Having bought his flat two decades ago, the lease term was of little relevance. Luckily, he recognised he would imminently be paying way over the odds for a lease extension. Samuel extended the lease just in the nick of time last August. Samuel and the landlord in the end settled on a premium of £6,000 . If the lease had slipped lower than 80 years, the sum would have become more exhorbitant by a minimum £850.
In 2011 we were contacted by Mr G Clark who, having acquired a garden flat in Chellaston in August 2005. The dilemma was if we could shed any light on how much (roughly) premium would likely be to prolong the lease by an additional years. Comparative premises in Chellaston with 100 year plus lease were in the region of £235,200. The mid-range amount of ground rent was £45 invoiced per annum. The lease termination date was on 1 July 2092. Having 66 years unexpired we calculated the premium to the landlord to extend the lease to be within £12,400 and £14,200 not including expenses.
Dr B Nguyen took over the lease of a garden flat in Chellaston in October 2010. The question was if we could shed any light on how much (roughly) premium would likely be to extend the lease by an additional years. Comparative homes in Chellaston with an extended lease were valued around £280,000. The average amount of ground rent was £55 billed every twelve months. The lease end date was on 28 November 2103. Taking into account 77 years unexpired we estimated the premium to the landlord for the lease extension to be within £13,300 and £15,400 plus fees.