Chelmsley Wood leases on residential properties are gradually losing value. if your lease has in the region of 90 years unexpired, you should start considering the need for a lease extension. If lease term is under eighty years, you will then be required to pay half of the property's 'marriage value' on top of the standard cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Flat owners in Chelmsley Wood will mostly be legally entitled to a lease extension; however It would be wise to check with a lawyer to confirm your eligibility. In certain situations you may not qualify. There are also strict timetables and steps to comply with once the process has started so it’s best to be guided by a conveyancing solicitor during the process.
It is generally accepted that a residential leasehold with in excess of one hundred years unexpired lease term is worth approximately the same as a freehold. Where an further ninety years added to any lease with more than 45 years left, the premises will be equivalent in value to a freehold for many years in the future.
| 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. |
| Coventry Building Society | 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
The conveyancers that we work with procure Chelmsley Wood lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
18 months ago Eli, came perilously near to the 80-year threshold with the lease on his two bedroom apartment in Chelmsley Wood. In buying his property two decades ago, the lease term was of minimal bearing. Fortunately, he realised he would soon be paying an inflated amount for a lease extension. Eli was able to extend his lease at the eleventh hour last August. Eli and the freeholder eventually agreed on sum of £5,500 . If he failed to meet the deadline, the amount would have gone up by a minimum £1,050.
In 2010 we were phoned by Dr Y Roux who, having took over the lease of a studio flat in Chelmsley Wood in February 2011. The question was if we could approximate the price could be for a 90 year lease extension. Comparable residencies in Chelmsley Wood with 100 year plus lease were in the region of £254,200. The mid-range amount of ground rent was £60 collected annually. The lease terminated on 24 November 2075. Taking into account 51 years left we estimated the compensation to the landlord for the lease extension to be between £43,700 and £50,600 not including costs.
In 2011 we were approached by Mr and Mrs. L Thomas who, having owned a purpose-built flat in Chelmsley Wood in August 1998. The question was if we could estimate the price would be to prolong the lease by an additional years. Identical properties in Chelmsley Wood with a long lease were in the region of £215,600. The average ground rent payable was £45 invoiced monthly. The lease came to a finish in 2086. Having 62 years as a residual term we estimated the premium to the landlord to extend the lease to be between £18,100 and £20,800 exclusive of costs.