There is no doubt about it a leasehold property in Chase Side is a wasting asset as a result of the shortening lease. Where the lease has, over 100 years remaining then this decrease may be of little impact nevertheless there will become a stage when a lease has under 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 extend the lease without delay. The majority of flat owners in Chase Side will qualify for this right; nevertheless a conveyancer can advise if you qualify for a lease extension. In certain situations you may not qualify, the most common reason being that you have owned the property for less than two years.
Leasehold premises in Chase Side with over 100 years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little to be gained by purchasing 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. |
| Chelsea 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. |
| 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. |
Lease extensions in Chase Side can be a difficult process. We recommend you obtain professional help from a lawyer and valuer with experience in this area.
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 dealing with Chase Side lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In 2014 Stanley, came dangerously close to the eighty-year mark with the lease on his leasehold apartment in Chase Side. In buying his flat two decades ago, the unexpired term was of little bearing. Thankfully, he noticed he would soon be paying an inflated amount for Extending the lease. Stanley extended the lease at the eleventh hour in January. Stanley and the freeholder subsequently agreed on a premium of £5,500 . If he failed to meet the deadline, the figure would have escalated by a minimum £1,000.
Last Autumn we were approach by Mr and Mrs. J Dupont , who purchased a one bedroom flat in Chase Side in January 1995. The question was if we could approximate the compensation to the landlord would be for a 90 year extension to my lease. Similar homes in Chase Side with a long lease were in the region of £242,600. The average ground rent payable was £45 collected yearly. The lease finished in 2093. Considering the 67 years remaining we estimated the premium to the freeholder for the lease extension to be between £11,400 and £13,200 not including professional charges.
An example of a Freehold Enfranchisement matter before the tribunal for a Chase Side premises is 23 Beaconsfield Road in July 2013. The Tribunals decided that the amount payable was £31,203 for the freehold. This case was in relation to 2 flats. The remaining number of years on the lease was 70.31 years.