Chesham Bois leases on domestic properties are gradually losing value. if your lease has in the region of 90 years remaining, you should start considering the need for a lease extension. It is important to recognise that it is that it is desirable for a lease extension to take place before the term of the current lease drops under 80 years - otherwise a higher amount will be payable. Flat owners in Chesham Bois will usually be legally entitled to a lease extension; however it’s a good idea to check with a conveyancer to confirm your eligibility. In some cases you may not be entitled. There are prescribed timetables and procedures to comply with once the process has started so it’s wise to be guided by a lawyer during the process.
Leasehold residencies in Chesham Bois with more than 100 years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Yorkshire 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. |
The conveyancers that we work with undertake Chesham Bois 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.
Kai was the the leasehold owner of a 2 bedroom apartment in Chesham Bois being sold with a lease of a few days over 72 years left. Kai on an informal basis contacted his landlord a well known London-based freehold company for a lease extension. The landlord was prepared to give an extension on non-statutory terms taking the lease to 125 years subject to a new rent to start with set at £150 per annum and doubled every 25 years thereafter. No ground rent would be payable on a lease extension were Kai to exercise his statutory right. Kai procured expert legal guidance and was able to make an informed decision and deal with the matter and sell the property.
In 2010 we were e-mailed by Ms Alicia Davis who, having bought a studio flat in Chesham Bois in June 2001. The question was if we could estimate the premium would be to extend the lease by ninety years. Similar properties in Chesham Bois with 100 year plus lease were valued around £285,000. The average ground rent payable was £55 collected annually. The lease terminated in 2105. Considering the 80 years outstanding we estimated the premium to the landlord to extend the lease to be between £12,400 and £14,200 not including expenses.
Last Spring we were e-mailed by Dr H Clarke , who moved into a one bedroom flat in Chesham Bois in September 2002. The question was if we could shed any light on how much (approximately) price would be for a ninety year lease extension. Comparative residencies in Chesham Bois with an extended lease were valued around £200,800. The average amount of ground rent was £65 collected per annum. The lease expired on 2 February 2085. Given that there were 60 years remaining we estimated the premium to the landlord to extend the lease to be within £20,900 and £24,200 exclusive of legals.