Chandlers Ford leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease becomes more expensive. Most owners of residential leasehold property in Chandlers Ford enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Chandlers Ford you must check if your lease has between seventy and 90 years left. In particular once the remaining lease term slips under 80 years, the premium due on any lease extension increases dramatically as part of the premium you will incur is what is known as a marriage value
Leasehold residencies in Chandlers Ford with more than one hundred years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little upside in buying the freehold unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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. |
Engaging our service will provide you increased control over the value of your Chandlers Ford leasehold, as your property will be more valuable and saleable in respect of lease length should you want to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Subsequent to protracted discussions with the freeholder of her leasehold flat in Chandlers Ford, Imogen initiated the lease extension process just as her lease was approaching the crucial 80-year deadline. The lease extension was finalised in January 2005. The landlord’s charges were negotiated to less than 450 pounds.
Dr B Murphy purchased a newly refurbished flat in Chandlers Ford in October 2007. The dilemma was if we could approximate the price would likely be to prolong the lease by 90 years. Identical homes in Chandlers Ford with 100 year plus lease were worth £267,600. The average ground rent payable was £65 collected per annum. The lease expired in 2092. Having 67 years as a residual term we estimated the compensation to the freeholder to extend the lease to be within £14,300 and £16,400 plus legals.
In 2013 we were called by Mr A Baker who, having bought a basement apartment in Chandlers Ford in February 1995. The question was if we could approximate the premium could be to extend the lease by ninety years. Comparable premises in Chandlers Ford with an extended lease were worth £206,200. The mid-range ground rent payable was £60 collected monthly. The lease terminated in 2081. Considering the 56 years left we approximated the compensation to the freeholder to extend the lease to be within £31,400 and £36,200 exclusive of professional charges.