With a residential leasehold premises in Chelmsford, you are actually purchasing a right to reside in a property for a set period of time. Modern flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned as this seems like a long period of time, you should think about a lease extension sooner as opposed to later. The general rule is that the shorter the number of years is the cost of extending the lease gets disproportionately greater notably when there are fewer than 80 years left. Leasehold owners in Chelmsford with a lease drawing near to 81 years left should seriously consider extending it sooner rather than later. When a lease has below 80 years left, under the relevant legislation the landlord is entitled to calculate and levy a greater premium, assessed on a technical calculation, strangely termed as “marriage value” which is payable.
Leasehold properties in Chelmsford with over 100 years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease value 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 maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Coventry Building Society | |
| Godiva Mortgages | |
| National Westminster Bank | |
| Nationwide Building Society |
Lease extensions in Chelmsford can be a difficult process. We recommend you procure guidance 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 procuring Chelmsford lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Following protracted discussions with the landlord of her purpose-built flat in Chelmsford, Rosie started the lease extension process just as the lease was coming close to the crucial 80-year deadline. The transaction completed in October 2014. The landlord’s fees were negotiated to under 450 GBP.
In 2010 we were approached by Dr Millie Brooks who, having purchased a one bedroom apartment in Chelmsford in June 1998. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord would be for a ninety year extension to my lease. Identical flats in Chelmsford with a long lease were in the region of £166,400. The mid-range ground rent payable was £60 collected monthly. The lease ended on 6 April 2080. Considering the 54 years unexpired we calculated the compensation to the freeholder for the lease extension to be between £32,300 and £37,400 plus costs.
Last Christmas we were contacted by Mr and Mrs. B André , who owned a first floor apartment in Chelmsford in July 2005. We are asked if we could shed any light on how much (roughly) premium would likely be for a ninety year lease extension. Comparable homes in Chelmsford with an extended lease were worth £227,800. The average amount of ground rent was £45 billed yearly. The lease terminated in 2091. Having 65 years remaining we approximated the compensation to the landlord to extend the lease to be within £13,300 and £15,400 plus costs.