As the the remaining lease term of a Chaddesley Corbett domestic lease diminished so does its value and therefore the value of your property. Where the lease has, more than one hundred years remaining then this decrease may be fractional nevertheless there will become a point in time when a lease has under than eighty years unexpired as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the main logic behind why you should extend the lease without delay. The majority of flat owners in Chaddesley Corbett will meet the qualifying criteria; that being said a lawyer can advise if you are eligible to extend your lease. In certain situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
It is conventional wisdom that a property with in excess of one hundred years unexpired lease term is worth roughly the same as a freehold. Where an additional 90 years added to any lease with more than 45 years unexpired, the property will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Chaddesley Corbett can be a difficult process. We recommend you procure professional help from a lawyer and valuer well versed in the legislation and lease extension process.
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 in-depth market knowledge dealing with Chaddesley Corbett lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Nathaniel owned a conversion apartment in Chaddesley Corbett being marketed with a lease of a little over sixty years left. Nathaniel informally approached his landlord a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to give an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £100 yearly. No ground rent would be due on a lease extension were Nathaniel to exercise his statutory right. Nathaniel procured expert legal guidance and secured an acceptable deal without resorting to tribunal and readily saleable.
Last Autumn we were e-mailed by Mrs Erin Howard , who took over the lease of a garden flat in Chaddesley Corbett in April 1995. We are asked if we could approximate the premium could be for a 90 year extension to my lease. Comparable residencies in Chaddesley Corbett with a long lease were in the region of £216,000. The mid-range amount of ground rent was £60 billed monthly. The lease terminated on 22 September 2083. Taking into account 58 years as a residual term we estimated the compensation to the freeholder for the lease extension to be within £28,500 and £33,000 exclusive of legals.
Last year we were e-mailed by Mr and Mrs. D Collins , who purchased a first floor apartment in Chaddesley Corbett in September 2005. The question was if we could shed any light on how much (approximately) premium would likely be for a 90 year lease extension. Identical flats in Chaddesley Corbett with a long lease were valued about £205,000. The average ground rent payable was £50 collected monthly. The lease terminated in 2103. Considering the 78 years remaining we approximated the compensation to the freeholder to extend the lease to be within £7,600 and £8,800 exclusive of fees.