When it comes to domestic leasehold premises in Chester, you are actually buying a right to reside in a property for a prescribed time frame. In recent years 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 extending the lease sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease becomes disproportionately more expensive notably when there are fewer than 80 years remaining. Anyone in Chester with a lease drawing near to 81 years unexpired should seriously consider extending it sooner than later. When the lease term has under 80 years outstanding, under the relevant statute the freeholder can calculate and charge a greater amount, based on a technical multiplication, known as “marriage value” which is payable.
Leasehold premises in Chester with over one hundred years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and service charges merit it.
| 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. |
| 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. |
| Godiva Mortgages | 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Chester can be a difficult process. We recommend you get guidance from a conveyancer and valuer with experience in lease extensions.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience procuring Chester lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Arthur was the the leasehold owner of a studio flat in Chester on the market with a lease of just over sixty years outstanding. Arthur informally approached his freeholder being a well known local-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of an increased rent to £100 yearly. Ordinarily, ground rent would not be payable on a lease extension were Arthur to exercise his statutory right. Arthur obtained expert advice and secured an acceptable resolution without resorting to tribunal and sell the flat.
In 2012 we were approached by Mr M Petit who, having took over the lease of a ground floor flat in Chester in March 2000. The question was if we could estimate the compensation to the landlord would likely be for a ninety year extension to my lease. Comparable residencies in Chester with an extended lease were worth £267,600. The average amount of ground rent was £65 collected yearly. The lease ran out in 2092. Taking into account 67 years remaining we estimated the premium to the freeholder for the lease extension to be between £14,300 and £16,400 not including costs.
Dr Adam Jackson bought a newly refurbished apartment in Chester in April 2004. The dilemma was if we could approximate the price would be for a ninety year extension to my lease. Identical premises in Chester with an extended lease were in the region of £206,200. The mid-range amount of ground rent was £60 billed per annum. The lease terminated in 2081. Given that there were 56 years left we estimated the compensation to the freeholder to extend the lease to be within £31,400 and £36,200 exclusive of fees.