The rule of thumb is, all other things holding equal, the shorter the lease the more costly the premium. Qualifying leaseholders in Chaddesley Corbett have the legal entitlement to extend the lease for a further ninety years in accordance with legislation. Please think carefully before delaying your Chaddesley Corbett lease extension. Shelving the costs today simply escalates the amount you will eventually have to pay for a lease extension.
Leasehold residencies in Chaddesley Corbett with over one hundred years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little upside in buying the freehold unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Regardless of whether you are a tenant or a landlord in Chaddesley Corbett,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Chaddesley Corbett valuers.
Ben owned a 2 bedroom flat in Chaddesley Corbett being marketed with a lease of just over 59 years unexpired. Ben on an informal basis contacted his freeholder being a well known London-based freehold company for a lease extension. The freeholder was prepared to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent initially set at £200 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Ben to invoke his statutory right. Ben obtained expert advice and secured satisfactory deal informally and sell the property.
Last Spring we were contacted by Mr and Mrs. K Pérez , who moved into a first floor flat in Chaddesley Corbett in May 2010. The question was if we could estimate the compensation to the landlord would likely be to extend the lease by an additional years. Identical premises in Chaddesley Corbett with an extended lease were valued around £200,000. The mid-range ground rent payable was £50 billed every twelve months. The lease concluded in 2102. Having 77 years unexpired we calculated the premium to the landlord for the lease extension to be between £8,600 and £9,800 not including fees.
Last May we were called by Ms Yasmin Sánchez , who owned a basement flat in Chaddesley Corbett in May 2007. We are asked if we could approximate the premium could be to prolong the lease by 90 years. Comparable premises in Chaddesley Corbett with a long lease were worth £265,200. The mid-range amount of ground rent was £65 collected monthly. The lease came to a finish in 2091. Having 66 years outstanding we calculated the premium to the freeholder for the lease extension to be between £15,200 and £17,600 exclusive of professional charges.