Chadwell St Mary leases on residential properties are gradually losing value. if your lease has approximately 90 years unexpired, you should start thinking about a lease extension. If lease term is less than eighty years, you will then have to pay half of the property's 'marriage value' in addition to the standard cost of the lease extension to your landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Flat owners in Chadwell St Mary will usually qualify for a lease extension; however It would be wise to check with a lawyer to check if you qualify. In some situations you may not be entitled. There are prescribed timetables and procedures to follow once the process has started so it’s sensible to be guided by a lawyer during the process.
It is generally accepted that a residential leasehold with over one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an further ninety years added to any lease with more than 45 years unexpired, the residence will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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. |
The conveyancing solicitors 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 conveyancing solicitor we work with provide it.
Connor was the the leasehold owner of a high value flat in Chadwell St Mary on the market with a lease of a little over fifty eight years unexpired. Connor informally approached his freeholder being a well known Manchester-based freehold company for a lease extension. The freeholder was prepared to give an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £200 annually. Ordinarily, ground rent would not be payable on a lease extension were Connor to exercise his statutory right. Connor obtained expert advice and was able to make a more informed judgement and deal with the matter and sell the property.
Last January we were called by Mrs Ella Rose , who purchased a one bedroom apartment in Chadwell St Mary in May 2005. We are asked if we could shed any light on how much (approximately) compensation to the landlord would likely be to extend the lease by an additional years. Similar homes in Chadwell St Mary with 100 year plus lease were valued about £168,800. The mid-range ground rent payable was £60 collected monthly. The lease ended in 2081. Given that there were 55 years outstanding we calculated the compensation to the landlord to extend the lease to be within £31,400 and £36,200 not including legals.
Mr and Mrs. R Norbert completed a newly refurbished apartment in Chadwell St Mary in October 2002. We are asked if we could approximate the price could be for a 90 year lease extension. Identical homes in Chadwell St Mary with a long lease were worth £235,200. The mid-range ground rent payable was £45 billed per annum. The lease ran out on 9 June 2092. Given that there were 66 years left we estimated the premium to the landlord to extend the lease to be between £12,400 and £14,200 plus legals.