With a long leasehold property in Chesham Bois, you are actually purchasing an entitlement to reside in a property for a set period of time. Modern flat leases typically tend to be for 99 years or 125. Even though this may appear like a long period of time, you should consider a lease extension sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly especially once there are less than 80 years left. Anyone in Chesham Bois with a lease nearing 81 years unexpired should seriously consider extending it as soon as possible. When a lease has below 80 years remaining, under the relevant legislation the freeholder can calculate and charge a larger premium, based on a technical multiplication, known as “marriage value” which is due.
It is conventional wisdom that a residential leasehold with in excess of 100 years unexpired lease term is worth approximately the same as a freehold. Where an further 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 |
|---|---|
| Accord Mortgages | 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. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The lawyers 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 conveyancing solicitor we work with provide it.
After protracted discussions with the landlord of her purpose-built apartment in Chesham Bois, Bethany commenced the lease extension process just as her lease was coming close to the all-important eighty-year mark. The lease extension was concluded in June 2013. The freeholder’s fees were restricted to below 600 pounds.
Last month we were approach by Mr and Mrs. C François , who owned a purpose-built apartment in Chesham Bois in March 1997. We are asked if we could estimate the premium would be for a 90 year lease extension. Similar flats in Chesham Bois with an extended lease were valued around £186,000. The average ground rent payable was £65 billed annually. The lease came to a finish in 2082. Considering the 58 years as a residual term we approximated the compensation to the landlord to extend the lease to be between £24,700 and £28,600 exclusive of professional charges.
In 2014 we were e-mailed by Mrs Bethan Lee who, having completed a ground floor flat in Chesham Bois in March 2004. The question was if we could approximate the premium would likely be for a 90 year extension to my lease. Similar homes in Chesham Bois with an extended lease were in the region of £250,000. The average ground rent payable was £50 collected yearly. The lease ended in 2093. Having 69 years as a residual term we approximated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 exclusive of fees.