There is no doubt about it a leasehold property in Chandlers Ford is a wasting asset as a result of the shortening lease. If the lease has, beyond 125 years to run then this decrease may be negligible nevertheless there will become a point in time when a lease has less than 80 years left as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the primary rational as to why you should consider extending without delay. Most flat owners in Chandlers Ford will meet the qualifying criteria; however a lawyer will be able to confirm if you are eligible to extend your lease. In certain situations you may not qualify, the most frequent reason being that you have owned the property for under two years.
It is conventional wisdom that a residential leasehold 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 residence will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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; |
| Godiva Mortgages | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Regardless of whether you are a tenant or a landlord in Chandlers Ford,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Chandlers Ford valuers.
Isaac was the the leasehold proprietor of a 2 bedroom apartment in Chandlers Ford on the market with a lease of a little over 72 years unexpired. Isaac on an informal basis contacted his freeholder a well known Bristol-based freehold company for a lease extension. The landlord was keen to grant an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £125 annually. Ordinarily, ground rent would not be due on a lease extension were Isaac to invoke his statutory right. Isaac procured expert legal guidance and secured satisfactory resolution without resorting to tribunal and readily saleable.
Mr and Mrs. G Moreau owned a recently refurbished flat in Chandlers Ford in June 2005. We are asked if we could approximate the premium would be to extend the lease by an additional years. Identical residencies in Chandlers Ford with 100 year plus lease were in the region of £198,800. The mid-range ground rent payable was £55 invoiced every twelve months. The lease concluded in 2080. Given that there were 55 years outstanding we estimated the compensation to the landlord to extend the lease to be within £33,300 and £38,400 exclusive of costs.
Last Autumn we were contacted by Mr and Mrs. V Mitchell , who acquired a purpose-built flat in Chandlers Ford in April 1997. The question was if we could shed any light on how much (approximately) premium would be to prolong the lease by an additional years. Identical homes in Chandlers Ford with 100 year plus lease were in the region of £300,000. The average ground rent payable was £50 invoiced per annum. The lease came to a finish in 2100. Considering the 75 years as a residual term we approximated the premium to the landlord to extend the lease to be within £9,500 and £11,000 exclusive of professional charges.