The rule of thumb is, all other things holding equal, the shorter the lease the more expensive the premium. Qualifying leaseholders in Chaddesden may extend the lease for an additional 90 years in accordance with legislation. Do give careful consideration before delaying your Chaddesden lease extension. Shelving that expense now simply increases the price you will eventually be required to pay to extend the lease.
Leasehold properties in Chaddesden with over one hundred years left on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in buying the freehold unless savings on ground rent and service charges merit it.
| 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. |
| 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. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Yorkshire 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. |
Engaging our service gives you enhanced control over the value of your Chaddesden leasehold, as your property will be more valuable and saleable in relation to the lease length should you want to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Jonathan owned a high value flat in Chaddesden on the market with a lease of just over 59 years remaining. Jonathan on an informal basis spoke with his freeholder a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to agree an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £100 yearly. Ordinarily, ground rent would not be due on a lease extension were Jonathan to invoke his statutory right. Jonathan obtained expert legal guidance and was able to make an informed judgement and deal with the matter and ending up with a market value flat.
Mr T Mercier bought a garden apartment in Chaddesden in April 2012. We are asked if we could estimate the price would be for a ninety year extension to my lease. Similar properties in Chaddesden with 100 year plus lease were in the region of £218,000. The average ground rent payable was £45 invoiced per annum. The lease terminated on 5 August 2089. Given that there were 63 years as a residual term we estimated the premium to the freeholder to extend the lease to be within £17,100 and £19,800 exclusive of costs.
Last Summer we were approach by Dr V Martínez , who acquired a newly refurbished flat in Chaddesden in July 2002. We are asked if we could approximate the price would be to prolong the lease by an additional years. Comparable properties in Chaddesden with a long lease were valued about £265,000. The average ground rent payable was £55 billed quarterly. The lease came to a finish in 2100. Taking into account 74 years outstanding we estimated the premium to the landlord to extend the lease to be within £9,500 and £11,000 plus professional charges.