When it comes to residential leasehold property in Chellaston, you effectively rent it for a certain amount of time. In recent years flat leases typically tend to be for 99 years or 125. Many leasehold owners are unconcerned as this seems like a lengthy period of time, you should consider extending the lease sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease increases markedly especially when there are fewer than 80 years left. Residents in Chellaston with a lease drawing near to 81 years unexpired should seriously consider extending it without delay. Once a lease has below 80 years left, under the relevant Act the landlord is entitled to calculate and demand a greater amount, assessed on a technical multiplication, strangely termed as “marriage value” which is payable.
It is conventional wisdom that a residential leasehold with in excess of 100 years remaining is worth roughly the same as a freehold. Where an additional ninety years added to any lease with more than 30 years left, the premises will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Chelsea Building Society | 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Yorkshire Building Society | 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. |
Irrespective of whether you are a tenant or a freeholder in Chellaston,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 Chellaston valuers.
Off the back of protracted correspondence with the landlord of her one bedroom apartment in Chellaston, Kelsey commenced the lease extension process as the 80 year mark was swiftly coming. The transaction was concluded in February 2013. The landlord’s costs were negotiated to approximately 650 pounds.
Mr O Dupont completed a one bedroom apartment in Chellaston in January 2010. The dilemma was if we could approximate the premium would be to prolong the lease by 90 years. Comparative residencies in Chellaston with a long lease were valued about £290,000. The average ground rent payable was £60 collected annually. The lease terminated on 20 March 2105. Having 80 years outstanding we calculated the compensation to the freeholder to extend the lease to be within £13,300 and £15,400 not including expenses.
In 2012 we were called by Ms M Simon who, having bought a first floor flat in Chellaston in June 2003. The dilemma was if we could approximate the compensation to the landlord could be for a 90 year extension to my lease. Similar homes in Chellaston with a long lease were in the region of £200,800. The average ground rent payable was £65 billed yearly. The lease concluded on 16 October 2085. Considering the 60 years as a residual term we approximated the premium to the freeholder to extend the lease to be within £20,900 and £24,200 plus legals.