The market value of a leasehold property in Chelmsford depends on how many years the lease has remaining. If it is near to or fewer than eighty years you should foresee problems on re-sale, so it is recommended to arrange for a lease extension prior to purchasing. It is preferable to start the process of extending the lease is when a lease still has 82 years to run so that all matters can be concluded ahead of the 80 year mark. Current legislation enables Chelmsford qualifying lessees to a 90 year extension added to their unexpired lease term (ie if your lease has 50 years remaining the statutory lease extension will provide a new term of 140 years). The reason of the valuation is to determine the premium payable by the lessee to the freeholder for the acquisition of the lease extension.
It is generally accepted that a property with in excess of 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 unexpired, the residence will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | |
| Halifax | |
| Leeds Building Society | |
| Nationwide Building Society | |
| Skipton Building Society |
Using our service will provide you increased control over the value of your Chelmsford leasehold, as your property will be more valuable and marketable in respect of lease length should you decide to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Jude was the the leasehold proprietor of a 2 bedroom flat in Chelmsford on the market with a lease of fraction over 61 years outstanding. Jude informally spoke with his freeholder a well known Manchester-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years subject to an increased rent to £200 annually. Ordinarily, ground rent would not be payable on a lease extension were Jude to invoke his statutory right. Jude obtained expert advice and secured satisfactory deal informally and ending up with a market value flat.
Mr and Mrs. R Lefèvre owned a first floor flat in Chelmsford in March 2006. The question was if we could estimate the premium would be to extend the lease by an additional years. Comparable flats in Chelmsford with a long lease were worth £250,000. The mid-range ground rent payable was £50 collected yearly. The lease concluded in 2095. Having 69 years unexpired we estimated the premium to the landlord for the lease extension to be between £9,500 and £11,000 exclusive of professional charges.
Last month we were phoned by Dr B Scott , who was assigned a lease of a one bedroom apartment in Chelmsford in October 2002. We are asked if we could approximate the premium would likely be for a ninety year lease extension. Comparative properties in Chelmsford with a long lease were valued around £285,000. The average amount of ground rent was £55 collected yearly. The lease expired in 2106. Given that there were 80 years as a residual term we approximated the premium to the freeholder for the lease extension to be between £12,400 and £14,200 exclusive of legals.