The nearer a residential lease in Chesham Bois nears to zero years unexpired, the the greater the reduction in the value of the property. If the residual term has, in excess of one hundred years remaining then this decrease may be of little impact nevertheless there will become a point in time when a lease has under than 80 years left as part of the premium you will incur is what is known as a marriage value. This could increase sharply the cost. It is the primary logic behind why you should extend the lease without delay. The majority of flat owners in Chesham Bois will meet the qualifying criteria; nevertheless a conveyancer can confirm whether you are eligible for a lease extension. In certain situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
Leasehold premises in Chesham Bois with over 100 years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate charges merit it.
| 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. |
| 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Retaining our service will provide you better control over the value of your Chesham Bois leasehold, as your property will be more valuable and marketable in terms of lease length should you want to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Subsequent to protracted negotiations with the landlord of her two bedroom flat in Chesham Bois, Jade commenced the lease extension process as the eighty year threshold was swiftly advancing. The lease extension completed in April 2013. The landlord’s charges were negotiated to slightly above 550 pounds.
Mr and Mrs. W Reed completed a first floor flat in Chesham Bois in February 2010. The dilemma was if we could estimate the compensation to the landlord would be for a ninety year lease extension. Comparative residencies in Chesham Bois with an extended lease were valued around £220,400. The mid-range ground rent payable was £45 collected annually. The lease lapsed on 9 June 2090. Taking into account 64 years as a residual term we estimated the premium to the freeholder for the lease extension to be within £15,200 and £17,600 plus costs.
In 2011 we were approached by Ms Alisha Miller who, having owned a one bedroom flat in Chesham Bois in July 1999. The dilemma was if we could shed any light on how much (approximately) premium would be to extend the lease by an additional years. Identical premises in Chesham Bois with 100 year plus lease were worth £270,000. The average amount of ground rent was £55 invoiced every twelve months. The lease ran out on 26 January 2100. Having 74 years outstanding we approximated the compensation to the freeholder for the lease extension to be between £9,500 and £11,000 not including fees.