When it comes to long leasehold property in Chelmsley Wood, you are in fact renting it for a certain amount of time. These days 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 consider a lease extension sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly notably when there are fewer than eighty years remaining. Leasehold owners in Chelmsley Wood with a lease approaching 81 years remaining should seriously think of extending it sooner as opposed to later. Once a lease has below 80 years outstanding, under the relevant statute the freeholder is entitled to calculate and levy a larger amount, based on a technical calculation, strangely termed as “marriage value” which is payable.
It is generally considered that a property with more than 100 years remaining is worth approximately the same as a freehold. Where an further 90 years added to any lease with more than 35 years left, the residence will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Chelsea Building Society | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Irrespective of whether you are a tenant or a landlord in Chelmsley Wood,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Chelmsley Wood valuers.
Off the back of lengthy correspondence with the freeholder of her one bedroom apartment in Chelmsley Wood, Leah initiated the lease extension process as the eighty year threshold was fast nearing. The legal work was concluded in September 2012. The landlord’s charges were kept to an absolute minimum.
Ms S Bernard moved into a first floor apartment in Chelmsley Wood in May 2010. We are asked if we could estimate the premium could be to prolong the lease by a further 90 years. Similar homes in Chelmsley Wood with 100 year plus lease were valued about £255,000. The average amount of ground rent was £50 collected monthly. The lease finished in 2095. Given that there were 70 years left we calculated the compensation to the freeholder for the lease extension to be between £10,500 and £12,000 plus legals.
Last year we were e-mailed by Dr Harrison Young , who acquired a ground floor apartment in Chelmsley Wood in May 1998. The dilemma was if we could approximate the premium could be to extend the lease by ninety years. Identical residencies in Chelmsley Wood with an extended lease were in the region of £246,800. The average amount of ground rent was £60 billed every twelve months. The lease termination date was in 2075. Considering the 50 years left we approximated the compensation to the freeholder to extend the lease to be between £44,700 and £51,600 plus costs.