Owning a apartment usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. your lease will ordinarily be granted for a fixed period of time , ordinarily 99 or 125 years, although we have witnessed longer and shorter terms in Chelmsford. Inevitably, the length of lease remaining reduces as time goes by. This is often overlooked and only becomes a problem when the property needs to be disposed of or re-mortgaged. The shorter the lease the lower the value of the property and the more expensive it will be to procure a lease extension. Qualifying long lease owners in Chelmsford have the right to extend the lease for a further ninety years in accordance with statute. Do give due attention before putting off your Chelmsford lease extension. Putting off that expense now only increases the price you will ultimately have to pay to extend your lease
Leasehold properties in Chelmsford with over 100 years unexpired 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 circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Using our service gives you better control over the value of your Chelmsford leasehold, as your property will be more valuable and marketable in relation to the lease length should you wish 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.
In the wake of 6 months of unsuccessful negotiations with the landlord of her leasehold flat in Chelmsford, Louise started the lease extension process just as her lease was coming close to the crucial 80-year threshold. The legal work was concluded in February 2011. The freeholder’s costs were kept to an absolute minimum.
In 2010 we were approached by Dr L Sánchez who, having acquired a garden flat in Chelmsford in June 1995. The dilemma was if we could shed any light on how much (approximately) premium would be to extend the lease by ninety years. Comparative residencies in Chelmsford with an extended lease were valued about £200,800. The average amount of ground rent was £65 collected per annum. The lease lapsed on 15 September 2085. Considering the 60 years left we approximated the premium to the freeholder to extend the lease to be within £20,900 and £24,200 exclusive of expenses.
In 2011 we were approached by Mr and Mrs. A Ricardo who, having completed a studio apartment in Chelmsford in March 2006. The question was if we could approximate the premium would be for a ninety year extension to my lease. Comparative properties in Chelmsford with 100 year plus lease were worth £255,000. The mid-range amount of ground rent was £50 billed annually. The lease elapsed on 25 September 2096. Given that there were 71 years left we approximated the compensation to the landlord for the lease extension to be within £9,500 and £11,000 plus costs.