Owning a apartment usually means owning a lease of the property, which has a finite term of years. your lease will ordinarily be granted for a set period of time , usually 99 or 125 years, although we have come across longer and shorter terms in Chesham. Inevitably, the term of lease remaining shortens over time. This may pass by relatively unnoticed when the property needs to be disposed of or re-mortgaged. The fewer the years remaining the lower the value of the property and the more expensive it will be to obtain a lease extension. Eligible leaseholders in Chesham have the right to extend the lease for a further 90 years under the 1993 Leasehold Reform Act. You should give due deliberation before delaying your Chesham lease extension. Holding off that expense now simply increases the price you will ultimately have to pay to extend your lease
It is generally accepted 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 any lease with more than 35 years unexpired, the property will be equivalent in value to 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
Irrespective of whether you are a tenant or a landlord in Chesham,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Chesham valuers.
In recent months Jack, came dangerously near to the eighty-year mark with the lease on his two bedroom apartment in Chesham. Having bought his property two decades ago, the unexpired term was of no concern. Fortunately, he noticed he would soon be paying an inflated amount for a lease extension. Jack was able to extend his lease just in the nick of time in January. Jack and the landlord who owned the flat above subsequently settled on a premium of £5,500 . If he had missed the deadline, the price would have escalated by at least £1,125.
Last month we were approach by Ms I Taylor , who was assigned a lease of a garden apartment in Chesham in October 2001. We are asked if we could estimate the price would likely be for a ninety year extension to my lease. Identical flats in Chesham with a long lease were valued about £242,600. The mid-range amount of ground rent was £45 collected annually. The lease concluded in 2092. Taking into account 67 years remaining we estimated the premium to the freeholder for the lease extension to be between £11,400 and £13,200 exclusive of fees.
In 2014 we were e-mailed by Mrs H Laurent who, having purchased a basement flat in Chesham in February 1997. We are asked if we could estimate the compensation to the landlord could be for a 90 year extension to my lease. Identical homes in Chesham with a long lease were in the region of £280,000. The average amount of ground rent was £55 invoiced quarterly. The lease terminated on 19 August 2103. Considering the 78 years remaining we approximated the premium to the landlord to extend the lease to be within £13,300 and £15,400 not including legals.