Unfortunately that a Chaddesden residential lease is a wasting asset. The lease value drops in proportion to its lease length. The extent of this is not fully appreciated in the early years due to the depreciation being disguised by increases in the Chaddesden property market.Where your lease has approximately 90 years left, you should start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease dips lower than eighty years - otherwise a higher premium will be payable. The majority of flat owners in Chaddesden will be able to extend under the legislation; however a lawyer should be able to clarify if you are eligibility. In some cases you may not qualify. There are also strict deadlines and procedures to be adhered to once the process is initiated and you will need to be guided by your lawyer for the duration of the formalities.
It is generally accepted that a residential leasehold with over 100 years unexpired lease term is worth approximately the same as a freehold. Where an additional 90 years added to any lease with more than 30 years left, the residence will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Regardless of whether you are a tenant or a freeholder in Chaddesden,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Chaddesden valuers.
Logan owned a high value apartment in Chaddesden being marketed with a lease of fraction over 72 years outstanding. Logan on an informal basis spoke with his landlord being a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent at the outset set at £150 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Logan to exercise his statutory right. Logan obtained expert legal guidance and was able to make a more informed judgement and handle with the matter and ending up with a market value flat.
Dr T Cox was assigned a lease of a newly refurbished apartment in Chaddesden in May 2008. We are asked if we could estimate the price could be for a ninety year extension to my lease. Similar residencies in Chaddesden with 100 year plus lease were in the region of £208,200. The average amount of ground rent was £65 billed every twelve months. The lease came to a finish on 21 March 2086. Having 61 years remaining we approximated the compensation to the landlord to extend the lease to be between £20,000 and £23,000 plus expenses.
In 2014 we were e-mailed by Mr and Mrs. P Martinez who, having moved into a one bedroom flat in Chaddesden in June 2010. We are asked if we could approximate the price would likely be to prolong the lease by ninety years. Similar homes in Chaddesden with an extended lease were valued about £260,000. The average ground rent payable was £50 invoiced yearly. The lease concluded in 2097. Taking into account 72 years unexpired we estimated the compensation to the freeholder for the lease extension to be between £9,500 and £11,000 exclusive of expenses.