The value of Chadwell St Mary leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of extending the lease can escalate materialy once the unexpired lease term is below than 80 years
It is generally accepted that a residential leasehold with more than one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional 90 years added to any lease with more than 30 years unexpired, the premises will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Irrespective of whether you are a tenant or a landlord in Chadwell St Mary,the lease extension lawyers that we work with will always be willing 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 St Mary valuers.
Off the back of protracted correspondence with the landlord of her ground floor apartment in Chadwell St Mary, Jennifer started the lease extension process just as her lease was approaching the all-important eighty-year mark. The lease extension was concluded in May 2013. The landlord’s costs were kept to an absolute minimum.
In 2012 we were e-mailed by Dr Jude Scott who, having completed a basement flat in Chadwell St Mary in May 2011. We are asked if we could shed any light on how much (roughly) premium would likely be for a ninety year extension to my lease. Identical residencies in Chadwell St Mary with 100 year plus lease were in the region of £237,600. The average ground rent payable was £45 billed per annum. The lease ran out on 7 June 2093. Considering the 67 years as a residual term we approximated the premium to the landlord for the lease extension to be between £11,400 and £13,200 not including legals.
Mr and Mrs. I Reed took over the lease of a one bedroom flat in Chadwell St Mary in May 2000. We are asked if we could shed any light on how much (roughly) price would likely be to prolong the lease by an additional years. Identical homes in Chadwell St Mary with a long lease were worth £280,000. The average ground rent payable was £55 invoiced per annum. The lease came to a finish on 19 April 2104. Having 78 years left we calculated the premium to the landlord for the lease extension to be between £13,300 and £15,400 not including fees.