With a long leasehold premises in Chesham Bois, you are actually buying an entitlement to reside in a property for a set period of time. These days flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you should consider a lease extension sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease gets disproportionately greater notably when there are less than eighty years remaining. Anyone in Chesham Bois with a lease nearing 81 years unexpired should seriously think of extending it sooner than later. Once the lease term has under eighty years left, under the relevant statute the freeholder can calculate and demand a larger premium, based on a technical calculation, strangely termed as “marriage value” which is payable.
It is generally considered that a property with in excess of one hundred years remaining 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 many years ahead.
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Using our service gives you enhanced control over the value of your Chesham Bois leasehold, as your property will be more valuable and saleable in respect of lease length should you decide to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Half a year ago Thomas, started to get close to the eighty-year mark with the lease on his purpose- built flat in Chesham Bois. Having purchased his flat two decades ago, the length of the lease was of little relevance. by good luck, it dawned on him that he would imminently be paying way over the odds for a lease extension. Thomas was able to extend his lease just ahead of time in September. Thomas and the freeholder subsequently settled on sum of £6,000 . If the lease had slipped to less than 80 years, the sum would have escalated by a minimum £1,000.
In 2014 we were contacted by Ms Ellie François who, having purchased a recently refurbished flat in Chesham Bois in September 2007. The dilemma was if we could approximate the compensation to the landlord could be for a ninety year extension to my lease. Comparable residencies in Chesham Bois with 100 year plus lease were in the region of £280,000. The mid-range ground rent payable was £55 billed annually. The lease ended on 25 March 2105. Given that there were 79 years unexpired we estimated the premium to the freeholder for the lease extension to be within £13,300 and £15,400 plus costs.
Last Winter we were e-mailed by Mr and Mrs. Y Lee , who moved into a purpose-built apartment in Chesham Bois in June 1996. We are asked if we could approximate the price would be for a 90 year extension to my lease. Comparative residencies in Chesham Bois with a long lease were worth £191,000. The mid-range ground rent payable was £65 billed every twelve months. The lease finished on 1 April 2084. Taking into account 58 years unexpired we approximated the compensation to the landlord to extend the lease to be between £23,800 and £27,400 not including costs.