The re-sale value of a leasehold property in Chaddesley Corbett depends on how long the lease has left to run. If it is near to or fewer than 80 years you should envisage problems on re-sale, so it is advisable to arrange for a lease extension before buying. It is ideal to start the process of extending the lease is when a lease still has 82 years remaining so that formalities can be addressed ahead of the eighty year threshold. Current legislation entitles Chaddesley Corbett qualifying lessees to obtain a lease extension of ninety years in addition to the remaining lease term at a peppercorn rent (that is, rent free). The intention of the valuation is to arrive at an opinion of the premium payable by the lessee to the freeholder for the acquisition of the lease extension.
It is conventional wisdom that a residential leasehold with in excess of one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an further 90 years added to any lease with more than 30 years remaining, the property will be equivalent in value to 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. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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. |
Irrespective of whether you are a tenant or a landlord in Chaddesley Corbett,the lease extension experts 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 Chaddesley Corbett valuers.
Following protracted negotiations with the landlord of her first floor apartment in Chaddesley Corbett, Isobel commenced the lease extension process as the 80 year threshold was swiftly advancing. The lease extension was concluded in April 2006. The landlord’s costs were restricted to approximately 650 pounds.
Last Summer we were approach by Ms Daisy Davies , who bought a studio flat in Chaddesley Corbett in October 2001. We are asked if we could shed any light on how much (roughly) price would likely be to extend the lease by ninety years. Similar flats in Chaddesley Corbett with a long lease were worth £257,800. The average amount of ground rent was £65 billed monthly. The lease expired on 9 June 2090. Considering the 65 years left we estimated the premium to the freeholder for the lease extension to be within £18,100 and £20,800 exclusive of fees.
In 2014 we were phoned by Dr S Smith who, having owned a garden flat in Chaddesley Corbett in November 2009. We are asked if we could shed any light on how much (approximately) price would be for a ninety year lease extension. Similar properties in Chaddesley Corbett with 100 year plus lease were in the region of £196,400. The average amount of ground rent was £55 billed per annum. The lease lapsed in 2079. Taking into account 54 years as a residual term we approximated the compensation to the landlord to extend the lease to be between £35,200 and £40,600 exclusive of legals.