Chandlers Ford leases on residential deteriorating in value. Where your lease has about ninety years unexpired, you should start considering the need for a lease extension. If lease term is less than eighty years, you will then be required to pay half of the property's 'marriage value' on top of the standard cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Leasehold owners in Chandlers Ford will mostly be legally entitled to a lease extension; however it’s a good idea to check with a conveyancer to confirm your eligibility. In some situations you may not be entitled. There are also strict timetables and procedures to follow once the process is initiated so it’s sensible to be guided by a conveyancing solicitor during the process.
Leasehold residencies in Chandlers Ford with in excess of 100 years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start 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. |
The conveyancers that we work with handle Chandlers Ford 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 lawyer we work with provide it.
Zachary was the the leasehold owner of a studio apartment in Chandlers Ford on the market with a lease of a few days over fifty eight years remaining. Zachary informally contacted his freeholder being a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years on the basis of an increased rent to £125 annually. Ordinarily, ground rent would not be due on a lease extension were Zachary to invoke his statutory right. Zachary obtained expert advice and secured an acceptable deal informally and sell the property.
Mr and Mrs. S Martin was assigned a lease of a ground floor apartment in Chandlers Ford in August 2012. We are asked if we could approximate the compensation to the landlord would be to prolong the lease by a further 90 years. Identical flats in Chandlers Ford with 100 year plus lease were in the region of £290,000. The average ground rent payable was £45 billed quarterly. The lease came to a finish on 1 June 2098. Considering the 72 years outstanding we calculated the compensation to the landlord for the lease extension to be within £11,400 and £13,200 exclusive of legals.
In 2009 we were contacted by Dr B Ali who, having moved into a studio flat in Chandlers Ford in March 2007. We are asked if we could shed any light on how much (approximately) price could be for a ninety year lease extension. Comparable homes in Chandlers Ford with an extended lease were in the region of £233,200. The mid-range amount of ground rent was £60 billed monthly. The lease lapsed in 2087. Considering the 61 years left we estimated the compensation to the freeholder to extend the lease to be between £22,800 and £26,400 not including expenses.