The only way is down when it comes to Chipping Sodbury lease terms. Chipping Sodbury flats that have a remaining term fewer than 80 years will drop in value at a rapid rate, and the cost to extend your lease will go up.
It is conventional wisdom that a property with more than one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an further ninety years added to any lease with more than 30 years remaining, the property will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Chelsea Building Society | 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Engaging our service gives you increased control over the value of your Chipping Sodbury leasehold, as your property will be more valuable and saleable in relation to the lease length should you wish to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Jamie owned a studio flat in Chipping Sodbury being marketed with a lease of fraction over fifty eight years remaining. Jamie informally contacted 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 extend the lease to 125 years subject to an increased rent to £125 per annum. Ordinarily, ground rent would not be due on a lease extension were Jamie to exercise his statutory right. Jamie procured expert advice and was able to make a more informed decision and handle with the matter and readily saleable.
Mr J Walker was assigned a lease of a studio flat in Chipping Sodbury in May 1997. The dilemma was if we could approximate the compensation to the landlord could be for a 90 year extension to my lease. Similar residencies in Chipping Sodbury with an extended lease were valued around £255,000. The average ground rent payable was £50 invoiced per annum. The lease ran out in 2096. Taking into account 71 years as a residual term we calculated the compensation to the landlord for the lease extension to be within £9,500 and £11,000 not including fees.
Last Spring we were called by Mr and Mrs. G Simon , who moved into a recently refurbished flat in Chipping Sodbury in April 2001. The dilemma was if we could approximate the compensation to the landlord could be to prolong the lease by a further 90 years. Comparable flats in Chipping Sodbury with a long lease were valued about £246,800. The average amount of ground rent was £60 collected every twelve months. The lease ended on 14 September 2075. Considering the 50 years unexpired we estimated the premium to the landlord for the lease extension to be between £44,700 and £51,600 plus fees.