Chadwell St Mary 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 becomes more expensive. It is the case that most Chadwell St Mary tenants have the right to extend their lease by an additional ninety years under the 1993 Leasehold Reform Act. If you are a leasehold owner in Chadwell St Mary you must investigate if your lease has between 70 and 90 years left. In particular once the remaining lease term slips under 80 years, the amount payable for any lease extension increases dramatically as part of the premium you pay is what is known as a marriage value
Leasehold properties in Chadwell St Mary with in excess of 100 years outstanding 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 premises. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and estate charges justify 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Leeds Building Society | 85 years remaining from the start 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
The conveyancers that we work with procure Chadwell St Mary 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 conveyancer we work with provide it.
Riley was the the leasehold owner of a 2 bedroom apartment in Chadwell St Mary on the market with a lease of fraction over 59 years left. Riley informally contacted his freeholder a well known local-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent initially set at £200 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Riley to invoke his statutory right. Riley obtained expert advice and secured satisfactory resolution without going to tribunal and ending up with a market value flat.
Last Spring we were e-mailed by Mr Daniel Howard , who purchased a ground floor flat in Chadwell St Mary in May 2003. The question was if we could shed any light on how much (roughly) price would be for a 90 year extension to my lease. Identical premises in Chadwell St Mary with an extended lease were in the region of £210,600. The average ground rent payable was £45 collected quarterly. The lease lapsed on 12 July 2088. Given that there were 62 years unexpired we estimated the compensation to the freeholder to extend the lease to be within £18,100 and £20,800 not including fees.
Last Winter we were e-mailed by Mr and Mrs. O García , who was assigned a lease of a purpose-built apartment in Chadwell St Mary in June 2006. We are asked if we could shed any light on how much (approximately) price would be for a 90 year extension to my lease. Identical premises in Chadwell St Mary with 100 year plus lease were valued around £260,000. The mid-range ground rent payable was £50 billed yearly. The lease termination date was on 2 April 2099. Taking into account 73 years remaining we calculated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 exclusive of costs.