The re-sale value of a leasehold property in Chellaston depends on how many years the lease has left to run. If it is close to or fewer than 80 years you should expect problems on re-sale, so it is advisable to arrange for a lease extension before purchasing. Ideally one should start the lease extension process when the lease still has 82 years unexpired so that a lease extension can be concluded well before the 80 year cut off point. Current legislation enables Chellaston qualifying lessees to a 90 year extension added to their unexpired lease term (ie if your lease has 50 years left the statutory lease extension will provide a new term of 140 years). The purpose of the valuation is to determine the amount payable by the lessee to the freeholder for the acquisition of the lease extension.
It is conventional wisdom that a property with over 100 years unexpired lease term is worth approximately the same as a freehold. Where an further ninety years added to any lease with more than 45 years remaining, 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 are not acceptable. 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; |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Chellaston can be a difficult process. We recommend you procure professional help from a conveyancing solicitor and surveyor with experience in lease extensions.
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 Chellaston lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last Spring Jacob, started to get near to the 80-year mark with the lease on his ground floor flat in Chellaston. In buying his property 18 years previously, the lease term was of no bearing. Luckily, he recognised he needed to take steps soon on Extending the lease. Jacob extended the lease at the eleventh hour in January. Jacob and the landlord in the end agreed on an amount of £5,500 . If he had missed the deadline, the sum would have escalated by at least £900.
In 2011 we were approached by Mr I Ramírez who, having completed a basement apartment in Chellaston in September 2008. We are asked if we could approximate the price would be to prolong the lease by an additional years. Similar properties in Chellaston with a long lease were worth £280,000. The average ground rent payable was £55 billed monthly. The lease came to a finish in 2103. Considering the 77 years as a residual term we calculated the premium to the landlord to extend the lease to be between £13,300 and £15,400 plus fees.
Last November we were called by Dr Chantelle Gray , who bought a first floor flat in Chellaston in October 2001. We are asked if we could shed any light on how much (approximately) price would likely be for a ninety year extension to my lease. Similar premises in Chellaston with an extended lease were in the region of £183,600. The average amount of ground rent was £65 collected per annum. The lease lapsed on 26 March 2083. Given that there were 57 years as a residual term we calculated the premium to the landlord to extend the lease to be within £28,500 and £33,000 exclusive of fees.