Chelmsley Wood leases on residential properties are gradually losing value. if your lease has approximately ninety years unexpired, you should start considering the need for a lease extension. An important point to note is that it is financially advisable for your lease extension to be in place before the term of the current lease drops below eighty years - otherwise a higher premium will be payable. Flat owners in Chelmsley Wood will mostly qualify for a lease extension; however it’s a good idea to check with a conveyancer to check your eligibility. In some circumstances you may not be entitled. There are also strict timetables and steps to comply with once the process has commenced so it’s sensible to be guided by a lawyer during the process.
It is generally accepted that a property with in excess of 100 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 unexpired, the premises will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Using our service will provide you better control over the value of your Chelmsley Wood leasehold, as your property will be more valuable and marketable in terms of lease length should you decide 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.
Zachary was the the leasehold proprietor of a 2 bedroom flat in Chelmsley Wood on the market with a lease of a few days over fifty eight years remaining. Zachary on an informal basis contacted his freeholder being a well known local-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years on the basis of a new rent initially set at £150 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Zachary to invoke his statutory right. Zachary obtained expert advice and was able to make a more informed judgement and deal with the matter and ending up with a market value flat.
Last Spring we were called by Ms Phoebe Pérez , who acquired a one bedroom apartment in Chelmsley Wood in July 2006. We are asked if we could approximate the compensation to the landlord would be to extend the lease by a further 90 years. Comparable premises in Chelmsley Wood with an extended lease were in the region of £210,600. The average amount of ground rent was £45 invoiced quarterly. The lease ran out on 17 January 2087. Given that there were 62 years unexpired we approximated the compensation to the landlord for the lease extension to be within £18,100 and £20,800 exclusive of professional charges.
Mr and Mrs. K Nelson acquired a ground floor flat in Chelmsley Wood in March 2005. We are asked if we could estimate the premium could be to extend the lease by ninety years. Similar residencies in Chelmsley Wood with a long lease were worth £265,000. The mid-range ground rent payable was £50 billed monthly. The lease lapsed on 16 January 2098. Having 73 years outstanding we approximated the compensation to the landlord to extend the lease to be between £9,500 and £11,000 plus professional charges.