The market value of a leasehold property in Chadwell Heath depends on how long the lease has left to run. If it is close to or less than eighty years you should envisage problems on re-sale, so it is recommended to arrange for a lease extension prior to buying. It is preferable to commence the lease extension process when a lease still has 82 years remaining so that a lease extension can be addressed in advance of the 80 year threshold. Leasehold Reform legislation entitles Chadwell Heath qualifying lessees to acquire a new lease which will be for the balance of the existing lease plus a supplemental term of 90 years. The intention of the valuation is to determine the amount payable by the lessee to the freeholder for the acquisition of the lease extension.
Leasehold premises in Chadwell Heath with in excess of one hundred years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and service charges warrant it.
| 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
Lease extensions in Chadwell Heath can be a difficult process. We recommend you get professional help from a conveyancing solicitor 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 a wealth of experience dealing with Chadwell Heath lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Sebastian owned a conversion apartment in Chadwell Heath on the market with a lease of a few days over 61 years unexpired. Sebastian on an informal basis contacted his freeholder a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years subject to a new rent initially set at £100 per annum and increase every 25 years thereafter. No ground rent would be payable on a lease extension were Sebastian to exercise his statutory right. Sebastian obtained expert legal guidance and secured an acceptable resolution without going to tribunal and readily saleable.
Last Autumn we were phoned by Mr and Mrs. H Ramírez , who acquired a first floor flat in Chadwell Heath in July 2009. We are asked if we could shed any light on how much (approximately) price would likely be for a ninety year lease extension. Similar premises in Chadwell Heath with 100 year plus lease were in the region of £280,000. The mid-range amount of ground rent was £45 invoiced yearly. The lease ran out in 2094. Given that there were 69 years unexpired we estimated the compensation to the freeholder for the lease extension to be within £12,400 and £14,200 not including fees.
An example of a Lease Extension decision for a Chadwell Heath premises is 49 Aldborough Road South in July 2012. The Tribunal decided that the premium payable for the grant of the new lease was £13,925 This case affected 1 flat. The unexpired lease term was 61.36 years.