Chaddesden residential property owned on a long lease is a wasting asset because a leaseholder merely owns the property for a set term.
It is generally accepted that a residential leasehold with over one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years in the future.
| 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. |
| 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. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| 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. |
Lease extensions in Chaddesden can be a difficult process. We recommend you obtain guidance from a conveyancing solicitor 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 Chaddesden lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last year Hugo, came dangerously close to the 80-year threshold with the lease on his studio flat in Chaddesden. Having bought his home two decades ago, the lease term was of little relevance. by good luck, he became aware that he needed to take action soon on Extending the lease. Hugo arranged for a lease extension just under the wire in September. Hugo and the freeholder eventually agreed on the final figure of £6,000 . If the lease had gone below 80 years, the sum would have escalated by at least £900.
Mrs P David acquired a newly refurbished apartment in Chaddesden in November 2001. We are asked if we could approximate the compensation to the landlord would be to prolong the lease by ninety years. Comparative flats in Chaddesden with an extended lease were in the region of £173,800. The mid-range amount of ground rent was £60 invoiced quarterly. The lease concluded on 3 November 2081. Given that there were 55 years as a residual term we estimated the premium to the landlord for the lease extension to be within £31,400 and £36,200 plus legals.
Mrs Kayleigh Hall acquired a one bedroom flat in Chaddesden in September 2009. The question was if we could shed any light on how much (roughly) compensation to the landlord would be to prolong the lease by an additional years. Identical properties in Chaddesden with a long lease were worth £235,200. The mid-range amount of ground rent was £45 invoiced every twelve months. The lease elapsed in 2092. Considering the 66 years outstanding we estimated the premium to the freeholder to extend the lease to be within £12,400 and £14,200 exclusive of fees.