Chelmsley Wood leases on domestic properties are gradually losing value. Where your lease has in the region of 90 years remaining, you should start thinking about a lease extension. It is important to recognise that it is that it is financially advisable for your lease extension to take place before the term of the existing lease falls below eighty years - otherwise a higher amount will be due. Flat owners in Chelmsley Wood will mostly qualify for a lease extension; however it’s a good idea to check with a conveyancing solicitor to check your eligibility. In some cases you may not be entitled. There are also strict timetables and steps to follow once the process is initiated so it’s best to be guided by a lawyer during the process.
Leasehold premises in Chelmsley Wood with more than 100 years left on the lease are sometimes 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 upside in purchasing the reversionary interest unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Yorkshire 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. |
Lease extensions in Chelmsley Wood can be a difficult process. We recommend you procure guidance from a conveyancing solicitor and valuer with experience in lease extensions.
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 procuring Chelmsley Wood lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last October Jake, started to get close to the 80-year mark with the lease on his ground floor apartment in Chelmsley Wood. Having purchased his flat twenty years ago, the unexpired term was of no importance. As luck would have it, he realised he needed to take action soon on a lease extension. Jake was able to extend his lease just in the nick of time in March. Jake and the landlord who owned the flat above subsequently agreed on sum of £5,000 . If he not met the deadline, the amount would have become more costly by a minimum £850.
In 2010 we were e-mailed by Dr Evan Hall who, having purchased a studio flat in Chelmsley Wood in August 1999. The question was if we could shed any light on how much (roughly) compensation to the landlord could be for a 90 year extension to my lease. Comparative flats in Chelmsley Wood with an extended lease were in the region of £285,000. The mid-range ground rent payable was £55 invoiced every twelve months. The lease expired in 2104. Having 79 years outstanding we estimated the premium to the landlord to extend the lease to be within £13,300 and £15,400 plus legals.
In 2010 we were called by Mr V Johnson who, having acquired a purpose-built apartment in Chelmsley Wood in November 1997. The dilemma was if we could shed any light on how much (approximately) premium would likely be for a 90 year extension to my lease. Identical premises in Chelmsley Wood with an extended lease were in the region of £193,400. The average amount of ground rent was £65 invoiced every twelve months. The lease ran out on 27 April 2084. Having 59 years outstanding we approximated the compensation to the freeholder for the lease extension to be between £21,900 and £25,200 exclusive of professional charges.