Chelmsford leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease becomes more expensive. The majority of owners of residential leasehold property in Chelmsford enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Chelmsford you should investigate if your lease has between seventy and 90 years left. There are good reasons why a Chelmsford flat owner with a lease having around eighty years left should take steps to ensure that a lease extension is actioned without delay
It is conventional wisdom that a property with over 100 years remaining is worth approximately the equivalent as a freehold. Where an further ninety years added to any lease with more than 30 years unexpired, the residence will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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. |
Lease extensions in Chelmsford can be a difficult process. We recommend you secure professional help from a lawyer and surveyor well versed in the legislation and lease extension process.
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 in-depth market knowledge dealing with Chelmsford lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Evan was the the leasehold proprietor of a studio apartment in Chelmsford on the market with a lease of fraction over 61 years unexpired. Evan informally approached his freeholder a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent to start with set at £200 per annum and doubled every 25 years thereafter. No ground rent would be payable on a lease extension were Evan to exercise his statutory right. Evan obtained expert legal guidance and secured satisfactory resolution without resorting to tribunal and sell the property.
Mr and Mrs. K Morel was assigned a lease of a first floor apartment in Chelmsford in March 1996. The dilemma was if we could approximate the compensation to the landlord would likely be to extend the lease by an additional years. Comparable residencies in Chelmsford with a long lease were worth £203,200. The average ground rent payable was £65 invoiced yearly. The lease ran out in 2087. Given that there were 61 years unexpired we calculated the premium to the landlord for the lease extension to be between £19,000 and £22,000 plus costs.
In 2009 we were approached by Mrs E Morgan who, having completed a purpose-built apartment in Chelmsford in August 2009. We are asked if we could approximate the compensation to the landlord would be to extend the lease by an additional years. Comparable flats in Chelmsford with 100 year plus lease were in the region of £260,000. The average ground rent payable was £50 collected per annum. The lease came to a finish in 2098. Taking into account 72 years left we estimated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 exclusive of professional charges.