As the the remaining lease term of a Chellaston residential lease diminished so does its value and therefore the value of your property. Where the residual term has, beyond 100 years to run then this decrease may be fractional nevertheless there will become a point in time when a lease has under than eighty years left as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the primary rational as to why you should extend the lease without delay. The majority of flat owners in Chellaston will qualify for this right; nevertheless a conveyancer will be able to advise if you qualify to extend your lease. In limited situations you may not qualify, the most common reason being that you have owned the property for less than two 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 additional 90 years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
The lawyers 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.
Trailing lengthy correspondence with the landlord of her garden apartment in Chellaston, Kirsty commenced the lease extension process just as her lease was coming close to the all-important 80-year mark. The lease extension was finalised in September 2009. The landlord’s charges were negotiated to under 700 GBP.
Dr I Campbell took over the lease of a ground floor apartment in Chellaston in February 2010. We are asked if we could estimate the price would likely be for a 90 year lease extension. Comparable properties in Chellaston with 100 year plus lease were in the region of £210,600. The average amount of ground rent was £45 invoiced per annum. The lease expired on 13 July 2088. Having 62 years unexpired we estimated the compensation to the landlord for the lease extension to be between £18,100 and £20,800 not including expenses.
Mr and Mrs. L Martínez took over the lease of a recently refurbished flat in Chellaston in October 2005. We are asked if we could approximate the premium would be to extend the lease by an additional years. Comparative premises in Chellaston with an extended lease were worth £265,000. The mid-range ground rent payable was £50 collected annually. The lease finished on 24 November 2099. Taking into account 73 years unexpired we calculated the premium to the freeholder to extend the lease to be within £9,500 and £11,000 exclusive of legals.