The closer a domestic lease in Chelmsford gets to zero years unexpired, the the greater the reduction in the value of the property. Where the residual term has, more than 99 years to run then this decrease may be fractional nevertheless there will become a point in time when a lease has less than 80 years unexpired as part of the premium you will incur is what is known as a marriage value. This could increase sharply the cost. It is the main reason why you should extend the lease sooner rather than later. The majority of flat owners in Chelmsford will meet the qualifying criteria; that being said 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.
Leasehold premises in Chelmsford with in excess of 100 years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Chelmsford can be a difficult process. We recommend you secure professional help from a lawyer and valuer with experience in this area.
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 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.
After protracted discussions with the landlord of her studio flat in Chelmsford, Kate started the lease extension process just as the lease was nearing the all-important eighty-year threshold. The legal work was concluded in January 2013. The freeholder’s costs were negotiated to below 650 GBP.
Ms Alisha Martin moved into a first floor apartment in Chelmsford in October 1997. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord would be to prolong the lease by 90 years. Similar residencies in Chelmsford with a long lease were in the region of £218,000. The mid-range ground rent payable was £45 invoiced quarterly. The lease came to a finish on 20 October 2089. Given that there were 63 years left we approximated the premium to the freeholder for the lease extension to be within £17,100 and £19,800 plus professional charges.
Dr Reuben Bell moved into a basement apartment in Chelmsford in May 2004. We are asked if we could approximate the compensation to the landlord would likely be for a ninety year lease extension. Identical residencies in Chelmsford with 100 year plus lease were worth £265,000. The average ground rent payable was £50 invoiced yearly. The lease ended on 25 February 2100. Considering the 74 years left we estimated the compensation to the landlord for the lease extension to be within £9,500 and £11,000 exclusive of professional charges.