The re-sale value of a leasehold property in Chesham Bois depends on how long the lease has remaining. If it is close to or fewer than eighty years you should foresee difficulties on re-sale, so it is advisable to arrange for the lease to be extended before purchasing. Ideally one should start the process of extending the lease is when a lease still has 82 years remaining so that all matters can be addressed in advance of the eighty year mark. Current legislation enables Chesham Bois qualifying lessees to acquire a new lease which will be for the balance of the existing lease plus a further term of ninety years. The reason of the valuation is to determine the sum payable by the lessee to the freeholder for the acquisition of the lease extension.
It is generally considered that a property with more than one hundred years remaining is worth approximately the same as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Irrespective of whether you are a tenant or a freeholder in Chesham Bois,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Chesham Bois valuers.
Zachary was the the leasehold owner of a high value apartment in Chesham Bois on the market with a lease of a little over 61 years unexpired. Zachary informally approached his freeholder being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord was keen to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £100 per annum. No ground rent would be due on a lease extension were Zachary to exercise his statutory right. Zachary procured expert legal guidance and secured an acceptable resolution informally and readily saleable.
Dr S Stewart took over the lease of a newly refurbished apartment in Chesham Bois in March 1997. We are asked if we could shed any light on how much (roughly) premium could be for a ninety year extension to my lease. Comparable flats in Chesham Bois with a long lease were in the region of £200,800. The mid-range amount of ground rent was £65 billed yearly. The lease terminated in 2086. Taking into account 60 years left we estimated the compensation to the landlord for the lease extension to be within £20,900 and £24,200 not including professional charges.
In 2011 we were e-mailed by Mr and Mrs. V Kelly who, having acquired a recently refurbished flat in Chesham Bois in July 2011. We are asked if we could approximate the premium would be for a 90 year lease extension. Similar homes in Chesham Bois with an extended lease were worth £255,000. The mid-range amount of ground rent was £50 collected annually. The lease expired on 23 July 2096. Having 70 years remaining we calculated the premium to the freeholder to extend the lease to be within £9,500 and £11,000 plus costs.