The market value of Chard leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of a lease extension can escalate substantially once the remaining term is less than eighty years
Leasehold premises in Chard with in excess of 100 years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | 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. |
The conveyancing solicitors that we work with procure Chard 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 conveyancing solicitor we work with provide it.
Off the back of unsuccessful correspondence with the freeholder of her garden apartment in Chard, Ashleigh started the lease extension process just as the lease was coming close to the critical 80-year deadline. The legal work was finalised in January 2011. The landlord’s charges were kept to an absolute minimum.
In 2013 we were approached by Dr V Sharif who, having completed a first floor apartment in Chard in April 2005. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord would be to extend the lease by a further 90 years. Comparable premises in Chard with an extended lease were worth £250,000. The average amount of ground rent was £50 billed annually. The lease concluded in 2095. Having 69 years left we approximated the premium to the landlord to extend the lease to be within £9,500 and £11,000 plus expenses.
Last Summer we were approach by Dr Luca Miller , who moved into a ground floor flat in Chard in October 2005. We are asked if we could shed any light on how much (approximately) price could be for a 90 year lease extension. Similar homes in Chard with 100 year plus lease were valued around £290,000. The mid-range amount of ground rent was £60 billed per annum. The lease ended in 2106. Given that there were 80 years outstanding we approximated the premium to the landlord to extend the lease to be within £13,300 and £15,400 exclusive of expenses.