For anyone whose Chaddesden flat is held on a long lease, the message is clear – if no remedial action is taken, the property will eventually revert to the freeholder, leaving you empty-handed. The fewer the years remaining the lower the value of the property and the more expensive it will be to obtain a lease extension.
It is conventional wisdom that a property with in excess of 100 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 unexpired, the premises 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Irrespective of whether you are a tenant or a landlord in Chaddesden,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Chaddesden valuers.
Two years ago Hunter, came perilously close to the eighty-year threshold with the lease on his garden flat in Chaddesden. In buying his property two decades ago, the lease term was of minimal interest. by good luck, he recognised he would imminently be paying an escalated premium for Extending the lease. Hunter arranged for a lease extension just in the nick of time in August. Hunter and the freeholder via the managing agents subsequently agreed on the final figure of £6,000 . If he failed to meet the deadline, the amount would have increased by at least £1,150.
In 2010 we were called by Mr and Mrs. U Anderson who, having was assigned a lease of a newly refurbished flat in Chaddesden in June 2002. The question was if we could approximate the premium could be for a ninety year extension to my lease. Comparative flats in Chaddesden with an extended lease were valued around £255,000. The mid-range amount of ground rent was £50 invoiced monthly. The lease ended on 13 April 2097. Having 71 years as a residual term we calculated the premium to the landlord for the lease extension to be between £9,500 and £11,000 plus legals.
Last Spring we were phoned by Mr and Mrs. M Torres , who moved into a ground floor apartment in Chaddesden in July 1995. We are asked if we could approximate the compensation to the landlord could be to prolong the lease by a further 90 years. Similar properties in Chaddesden with a long lease were worth £254,200. The mid-range amount of ground rent was £60 billed quarterly. The lease finished in 2077. Considering the 51 years left we approximated the compensation to the freeholder to extend the lease to be within £43,700 and £50,600 plus fees.