It’s a harsh truth that a Chadwell Heath residential lease is a wasting asset. As the lease term reduces so does the value of the property. The extent of this is taken for granted in the early years due to the depreciation being disguised by increases in the Chadwell Heath property market.Once your lease nears 85ish years, you need to start thinking about a lease extension. If the number of years remaining drops below 80 years, you will end up paying half of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. The marriage fee is the amount of additional value that a lease extension will add the property The majority of leasehold owners in Chadwell Heath will be able to extend under the legislation; however a conveyancer will be able to confirm if you qualify for an extension. In some situations you may not be entitled. There are also strict deadlines and procedures to follow once the process has commenced and you will need to be guided by your lawyer throughout the process.
Leasehold residencies in Chadwell Heath with more than one hundred years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Regardless of whether you are a tenant or a freeholder in Chadwell Heath,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Chadwell Heath valuers.
Alfie was the the leasehold proprietor of a 2 bedroom flat in Chadwell Heath on the market with a lease of fraction over fifty eight years remaining. Alfie on an informal basis spoke with his freeholder being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of an increased rent to £200 per annum. No ground rent would be due on a lease extension were Alfie to invoke his statutory right. Alfie procured expert advice and was able to make a more informed decision and handle with the matter and ending up with a market value flat.
Last February we were e-mailed by Ms Aimee Gunderson , who moved into a recently refurbished flat in Chadwell Heath in June 1999. The question was if we could approximate the compensation to the landlord would be to extend the lease by a further 90 years. Similar properties in Chadwell Heath with an extended lease were valued around £208,600. The mid-range amount of ground rent was £60 billed quarterly. The lease end date was on 14 May 2082. Taking into account 57 years remaining we calculated the premium to the freeholder for the lease extension to be within £30,400 and £35,200 not including costs.
An example of a Lease Extension decision for a Chadwell Heath residence 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 term was 61.36 years.