It’s a harsh truth that a Chesham Bois residential lease is a deteriorating asset. The lease value reduces in proportion to its lease length. The extent of this is taken for granted in the early years due to the loss of value being disguised by increases in the Chesham Bois property market.Where your lease has approximately 90 years left, you should start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease slips below eighty years - otherwise a higher amount will be payable. The majority of leasehold owners in Chesham Bois will be able to extend under the legislation; however a conveyancer will be able to clarify if you are eligibility. In some situations you may not be entitled. There are also strict deadlines and procedures to be adhered to once the process is initiated and you will need to be guided by your conveyancing solicitor throughout the process.
It is generally considered that a residential leasehold with over 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 equivalent in value to a freehold for decades to come.
| 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Coventry Building Society | 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. |
| 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. |
The conveyancers that we work with handle 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.
Last Autumn Cameron, came seriously near to the 80-year mark with the lease on his one bedroom apartment in Chesham Bois. In buying his flat two decades ago, the length of the lease was of minimal importance. As luck would have it, he noticed he needed to take action soon on Extending the lease. Cameron arranged for a lease extension at the eleventh hour in January. Cameron and the freeholder via the management company subsequently agreed on an amount of £5,500 . If the lease had gone to less than 80 years, the amount would have become more exhorbitant by a minimum £1,025.
Last year we were e-mailed by Mrs Sophie François , who bought a ground floor apartment in Chesham Bois in July 2003. The question was if we could estimate the premium would be for a ninety year lease extension. Similar flats in Chesham Bois with an extended lease were valued around £183,600. The mid-range amount of ground rent was £65 collected yearly. The lease lapsed on 22 July 2082. Taking into account 57 years unexpired we estimated the premium to the freeholder for the lease extension to be within £28,500 and £33,000 not including fees.
In 2014 we were approached by Mr and Mrs. R Pérez who, having purchased a one bedroom apartment in Chesham Bois in June 1995. We are asked if we could shed any light on how much (roughly) compensation to the landlord would likely be to prolong the lease by a further 90 years. Comparative premises in Chesham Bois with a long lease were worth £245,000. The average amount of ground rent was £45 collected quarterly. The lease lapsed on 2 April 2093. Considering the 68 years as a residual term we calculated the premium to the freeholder to extend the lease to be within £9,500 and £11,000 not including expenses.