Chaddesley Corbett leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease gets more expensive. The majority of owners of residential leasehold property in Chaddesley Corbett enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Chaddesley Corbett you would be well advised to see if your lease has between seventy and 90 years left. There are compelling reasons why a Chaddesley Corbett leaseholder with a lease having around eighty years unexpired should take action to ensure that a lease extension is actioned without delay
It is generally accepted that a property with in excess of 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the property will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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. |
The conveyancers that we work with undertake Chaddesley Corbett 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 conveyancing solicitor we work with provide it.
During the course of the last few months Archie, started to get close to the 80-year threshold with the lease on his one bedroom apartment in Chaddesley Corbett. In buying his property two decades ago, the lease term was of little interest. Fortunately, it dawned on him that he needed to take steps soon on a lease extension. Archie was able to extend his lease at the eleventh hour in June. Archie and the freeholder via the management company in the end settled on a premium of £5,000 . If the lease had fallen below 80 years, the amount would have gone up by a minimum £1,000.
Ms Amelia Jackson acquired a ground floor flat in Chaddesley Corbett in September 2010. The question was if we could approximate the compensation to the landlord would likely be for a 90 year lease extension. Identical premises in Chaddesley Corbett with an extended lease were valued around £166,800. The average amount of ground rent was £50 billed monthly. The lease came to a finish on 1 June 2076. Given that there were 50 years remaining we calculated the premium to the freeholder for the lease extension to be within £32,300 and £37,400 not including fees.
In 2010 we were e-mailed by Ms N Davies who, having was assigned a lease of a first floor flat in Chaddesley Corbett in November 2008. We are asked if we could shed any light on how much (roughly) compensation to the landlord would likely be for a 90 year extension to my lease. Similar homes in Chaddesley Corbett with a long lease were valued around £280,000. The mid-range amount of ground rent was £45 billed annually. The lease came to a finish in 2096. Considering the 70 years left we approximated the premium to the landlord for the lease extension to be between £12,400 and £14,200 not including costs.