When it comes to domestic leasehold premises in Chesham Bois, you are actually purchasing an entitlement to reside in a property for a prescribed time frame. These days flat leases are usually granted for 99 years or 125. Even though this may appear like a long period of time, you should consider extending the lease sooner as opposed to later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly notably once there are less than eighty years left. Residents in Chesham Bois with a lease nearing 81 years left should seriously think of extending it sooner as opposed to later. Once the lease term has under 80 years outstanding, under the current Act the landlord can calculate and charge a greater amount, assessed on a technical multiplication, strangely termed as “marriage value” which is due.
It is generally considered 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 all but the shortest lease, the property will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Leeds Building Society | 85 years remaining from the start 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. |
Regardless of whether you are a tenant or a freeholder in Chesham Bois,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Chesham Bois valuers.
In 2014 George, came dangerously near to the eighty-year threshold with the lease on his leasehold flat in Chesham Bois. Having bought his flat two decades ago, the length of the lease was of minimal bearing. by good luck, he realised he needed to take steps soon on Extending the lease. George extended the lease at the eleventh hour last June. George and the landlord eventually agreed on a premium of £6,000 . If he not met the deadline, the premium would have escalated by a minimum £925.
Ms Rebecca Martin completed a garden apartment in Chesham Bois in July 2004. We are asked if we could shed any light on how much (roughly) compensation to the landlord could be to prolong the lease by a further 90 years. Identical premises in Chesham Bois with an extended lease were in the region of £275,000. The mid-range amount of ground rent was £55 collected monthly. The lease elapsed on 25 November 2102. Considering the 77 years remaining we estimated the premium to the landlord to extend the lease to be between £13,300 and £15,400 exclusive of professional charges.
In 2014 we were contacted by Mrs Eleanor Simon who, having was assigned a lease of a first floor flat in Chesham Bois in April 2003. The question was if we could approximate the price could be to extend the lease by an additional years. Comparable premises in Chesham Bois with 100 year plus lease were worth £183,600. The mid-range amount of ground rent was £65 billed per annum. The lease concluded on 18 August 2082. Taking into account 57 years as a residual term we calculated the compensation to the freeholder for the lease extension to be between £28,500 and £33,000 exclusive of expenses.