Chaddesden leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease becomes more expensive. Legislation has been in place for sometime now allowing qualifying Chaddesden residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Chaddesden you would be well advised to check if your lease has between seventy and ninety years remaining. There are good reasons why a Chaddesden flat owner with a lease having around 80 years left should take action to ensure that a lease extension is actioned without delay
Leasehold properties in Chaddesden with more than 100 years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Barnsley Building Society | |
| Halifax | |
| National Westminster Bank | |
| TSB |
The conveyancing solicitors that we work with undertake Chaddesden lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
Theo owned a conversion flat in Chaddesden being marketed with a lease of fraction over 59 years remaining. Theo informally approached his freeholder a well known local-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years on the basis of a new rent to start with set at £150 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Theo to exercise his statutory right. Theo obtained expert advice and was able to make a more informed decision and handle with the matter and readily saleable.
In 2012 we were e-mailed by Mr and Mrs. Y García who, having was assigned a lease of a recently refurbished flat in Chaddesden in July 2012. We are asked if we could approximate the price could be for a ninety year lease extension. Comparative properties in Chaddesden with an extended lease were worth £255,000. The mid-range ground rent payable was £50 billed per annum. The lease came to a finish in 2096. Taking into account 70 years unexpired we calculated the compensation to the freeholder for the lease extension to be between £10,500 and £12,000 exclusive of expenses.
In 2010 we were called by Dr Ashleigh Peterson who, having moved into a one bedroom apartment in Chaddesden in July 2006. We are asked if we could approximate the premium would likely be to prolong the lease by ninety years. Comparative premises in Chaddesden with a long lease were worth £246,800. The average amount of ground rent was £60 billed per annum. The lease expiry date was on 16 August 2076. Considering the 50 years outstanding we estimated the premium to the freeholder to extend the lease to be within £44,700 and £51,600 not including expenses.