The re-sale value of a leasehold property in Chantry depends on how long the lease has remaining. If it is close to or less than eighty years you should anticipate problems on re-sale, so it is advisable to arrange for a lease extension before purchasing. It is ideal to start the lease extension process when a lease still has 82 years unexpired so that all matters can be addressed well before the eighty year cut off point. Statute enables Chantry qualifying lessees to an additional term of ninety years over and above the remaining term, at a nominal rent (zero ground rent). The reason of the valuation is to determine the sum payable by the lessee to the freeholder for the acquisition of the lease extension.
Leasehold premises in Chantry with more than 100 years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Birmingham Midshires | |
| Godiva Mortgages | |
| Skipton Building Society | |
| TSB |
Regardless of whether you are a tenant or a landlord in Chantry,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Chantry valuers.
Zachary owned a high value apartment in Chantry being marketed with a lease of a little over 72 years outstanding. Zachary on an informal basis approached his landlord being a well known local-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to an increased rent to £200 per annum. Ordinarily, ground rent would not be due on a lease extension were Zachary to invoke his statutory right. Zachary obtained expert legal guidance and was able to make an informed decision and handle with the matter and readily saleable.
In 2013 we were approached by Mr O Leroy who, having acquired a basement flat in Chantry in October 2001. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord would be to extend the lease by ninety years. Comparable homes in Chantry with 100 year plus lease were in the region of £285,000. The average amount of ground rent was £55 billed every twelve months. The lease elapsed in 2105. Considering the 79 years left we approximated the premium to the freeholder for the lease extension to be between £13,300 and £15,400 plus costs.
In 2011 we were contacted by Ms Daisy Martinez who, having bought a recently refurbished apartment in Chantry in November 1996. The dilemma was if we could approximate the price would be to extend the lease by a further 90 years. Comparative flats in Chantry with a long lease were worth £193,400. The average amount of ground rent was £65 invoiced quarterly. The lease lapsed on 7 November 2085. Having 59 years left we estimated the compensation to the freeholder to extend the lease to be within £21,900 and £25,200 exclusive of expenses.