The rule of thumb is, all other things holding equal, the shorter the lease the more costly the premium. Qualifying leaseholders in Chesham can extend the lease for an additional 90 years in accordance with Leasehold Reform legislation. Do think carefully before delaying your Chesham lease extension. Shelving the costs now simply escalates the amount you will ultimately be required to pay to extend the lease.
It is generally considered that a property with more than 100 years remaining is worth roughly the same as a freehold. Where an additional 90 years added to any lease with more than 35 years left, the premises 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. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancers that we work with undertake Chesham 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 year Riley, came dangerously near to the eighty-year mark with the lease on his ground floor apartment in Chesham. In buying his flat two decades ago, the lease term was of little interest. Fortunately, it dawned on him that he needed to take steps soon on a lease extension. Riley arranged for a lease extension just under the wire in April. Riley and the freeholder eventually agreed on sum of £5,500 . If he had missed the deadline, the premium would have increased by a minimum £900.
Mr O Baker bought a ground floor flat in Chesham in April 2002. We are asked if we could approximate the premium would likely be for a ninety year lease extension. Comparative flats in Chesham with an extended lease were in the region of £246,800. The mid-range ground rent payable was £60 collected monthly. The lease lapsed in 2075. Taking into account 50 years left we calculated the premium to the freeholder to extend the lease to be within £44,700 and £51,600 not including costs.
In 2014 we were phoned by Mr and Mrs. A Turner who, having purchased a garden flat in Chesham in May 2005. We are asked if we could estimate the compensation to the landlord would be to extend the lease by ninety years. Comparative residencies in Chesham with an extended lease were valued around £208,200. The average amount of ground rent was £65 invoiced annually. The lease concluded on 24 October 2086. Having 61 years unexpired we calculated the premium to the freeholder for the lease extension to be within £20,000 and £23,000 plus costs.