On the balance of probabilities if you own a flat in Chelmsford you actually own a long leasehold interest over your property
It is conventional wisdom that a property with over one hundred years remaining is worth roughly the equivalent as a freehold. Where an further ninety years added to any lease with more than 45 years remaining, the residence will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| 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. |
| 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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 Chelmsford,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Chelmsford valuers.
In recent months Nathaniel, came critically near to the eighty-year mark with the lease on his first floor flat in Chelmsford. Having purchased his home two decades ago, the unexpired term was of little significance. Thankfully, he recognised he needed to take steps soon on Extending the lease. Nathaniel arranged for a lease extension just under the wire last July. Nathaniel and the landlord ultimately settled on a premium of £5,000 . If he not met the deadline, the amount would have become more costly by at least £925.
Last Christmas we were contacted by Ms K Murphy , who completed a ground floor flat in Chelmsford in July 2000. We are asked if we could approximate the premium would likely be to extend the lease by a further 90 years. Identical residencies in Chelmsford with an extended lease were worth £256,600. The average ground rent payable was £60 collected yearly. The lease ran out in 2077. Having 52 years outstanding we calculated the premium to the landlord for the lease extension to be within £41,800 and £48,400 plus fees.
In 2013 we were e-mailed by Mr Tyler Peterson who, having was assigned a lease of a purpose-built apartment in Chelmsford in November 1995. The dilemma was if we could estimate the price would likely be to extend the lease by a further 90 years. Identical residencies in Chelmsford with a long lease were valued about £218,000. The mid-range amount of ground rent was £45 billed every twelve months. The lease elapsed in 2088. Considering the 63 years outstanding we approximated the premium to the landlord for the lease extension to be between £17,100 and £19,800 exclusive of legals.