When it comes to residential leasehold property in Chadwell St Mary, you are actually purchasing an entitlement to reside in a property for a set period of time. In recent years flat leases are usually granted for 99 years or 125. Even though this may appear like a long period of time, you may think about a lease extension sooner as opposed to later. The general rule is that the shorter the number of years is the cost of extending the lease becomes disproportionately more expensive especially when there are less than 80 years left. Residents in Chadwell St Mary with a lease approaching 81 years remaining should seriously think of extending it without delay. Once a lease has less than eighty years remaining, under the relevant statute the landlord can calculate and demand a larger premium, based on a technical multiplication, known as “marriage value” which is payable.
It is conventional wisdom that a property with over one hundred years unexpired lease term is worth approximately the same as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be worth the same as a freehold for many years in the future.
| 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. |
| 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; |
| 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 |
| 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. |
Engaging our service gives you better control over the value of your Chadwell St Mary leasehold, as your property will be more valuable and saleable in terms of lease length should you decide to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Joshua was the the leasehold proprietor of a conversion flat in Chadwell St Mary on the market with a lease of fraction over fifty eight years outstanding. Joshua on an informal basis contacted his landlord a well known London-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 £150 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Joshua to invoke his statutory right. Joshua obtained expert legal guidance and secured satisfactory deal without going to tribunal and ending up with a market value flat.
In 2010 we were contacted by Mr and Mrs. S Torres who, having purchased a purpose-built flat in Chadwell St Mary in August 2003. We are asked if we could shed any light on how much (roughly) compensation to the landlord would likely be for a ninety year extension to my lease. Identical properties in Chadwell St Mary with 100 year plus lease were in the region of £275,000. The mid-range ground rent payable was £55 billed per annum. The lease elapsed in 2101. Considering the 76 years outstanding we estimated the premium to the landlord to extend the lease to be between £9,500 and £11,000 exclusive of professional charges.
Ms Millie Reed bought a purpose-built flat in Chadwell St Mary in November 2000. We are asked if we could approximate the price could be for a ninety year extension to my lease. Comparative premises in Chadwell St Mary with 100 year plus lease were worth £176,200. The average amount of ground rent was £65 collected monthly. The lease concluded in 2081. Given that there were 56 years left we approximated the compensation to the landlord for the lease extension to be between £29,500 and £34,000 not including fees.