There is no doubt about it a leasehold flat or house in Chellaston is a wasting asset as a result of the diminishing lease term. Where the residual term has, beyond 100 years remaining then this decrease may be negligible that being said there will become a point in time when a lease has less than 80 years left as part of the premium you will incur is what is known as a marriage value. This could increase sharply the cost. It is the primary rational as to why you should consider extending without delay. Most flat owners in Chellaston will meet the qualifying criteria; that being said a conveyancer can confirm if you are eligible for a lease extension. In certain situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
It is conventional wisdom that a property with in excess of 100 years remaining is worth approximately the same as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| 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; |
| 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The lawyers that we work with handle 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.
In 2014 Jake, came perilously near to the eighty-year mark with the lease on his leasehold apartment in Chellaston. Having purchased his flat 18 years ago, the length of the lease was of little concern. by good luck, he noticed he needed to take action soon on Extending the lease. Jake arranged for a lease extension at the eleventh hour in May. Jake and the landlord who owned the flat above in the end agreed on sum of £6,000 . If he not met the deadline, the sum would have become more exhorbitant by a minimum £850.
Last Autumn we were approach by Mrs Amelia Evans , who bought a garden flat in Chellaston in April 1999. The dilemma was if we could approximate the compensation to the landlord could be for a 90 year extension to my lease. Comparable residencies in Chellaston with an extended lease were in the region of £245,000. The average amount of ground rent was £50 billed annually. The lease finished in 2093. Considering the 68 years left we approximated the compensation to the landlord for the lease extension to be within £9,500 and £11,000 not including legals.
Last year we were phoned by Dr Dexter Bailey , who completed a recently refurbished apartment in Chellaston in April 2005. We are asked if we could estimate the compensation to the landlord would likely be for a ninety year lease extension. Comparative premises in Chellaston with 100 year plus lease were valued around £285,000. The mid-range amount of ground rent was £55 billed yearly. The lease lapsed in 2104. Having 79 years remaining we estimated the premium to the landlord to extend the lease to be within £13,300 and £15,400 exclusive of expenses.