It’s a harsh certainty that a Chard residential lease is a wasting asset. As the lease term diminishes so does the value of the property. The extent of this is taken for granted in the early years due to the deflation being disguised by increases in the Chard property market.Where your lease has approximately ninety years left, you need to start thinking about a lease extension. If lease term slips below 80 years, you will end up paying half of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. The marriage fee is the amount of extra value that a lease extension will add the property Most leasehold owners in Chard will be able to extend under the legislation; however a lawyer should be able to clarify whether you qualify for an extension. In some cases you may not qualify. There are also strict timetables and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancer throughout the formalities.
Leasehold premises in Chard with over 100 years remaining on the lease are often 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 upside in purchasing the freehold unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Birmingham Midshires | |
| Chelsea Building Society | |
| Godiva Mortgages | |
| Yorkshire Building Society |
Lease extensions in Chard can be a difficult process. We recommend you secure professional help from a conveyancing solicitor and valuer with experience in lease extensions.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge procuring Chard lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Daniel was the the leasehold proprietor of a high value flat in Chard on the market with a lease of a little over sixty years left. Daniel on an informal basis contacted 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 on the basis of an increased rent to £50 yearly. Ordinarily, ground rent would not be due on a lease extension were Daniel to invoke his statutory right. Daniel procured expert legal guidance and secured satisfactory deal informally and ending up with a market value flat.
In 2012 we were contacted by Mr S Wilson who, having moved into a studio apartment in Chard in November 2012. We are asked if we could approximate the compensation to the landlord would be to prolong the lease by a further 90 years. Similar residencies in Chard with an extended lease were valued about £261,600. The average amount of ground rent was £60 billed monthly. The lease expired in 2078. Considering the 52 years remaining we estimated the premium to the freeholder to extend the lease to be between £39,000 and £45,000 not including expenses.
Mr O Turner owned a one bedroom flat in Chard in May 1995. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord would be to prolong the lease by a further 90 years. Identical properties in Chard with 100 year plus lease were valued about £218,000. The mid-range amount of ground rent was £45 invoiced per annum. The lease concluded in 2089. Having 63 years unexpired we calculated the premium to the freeholder for the lease extension to be within £17,100 and £19,800 not including expenses.