With a domestic leasehold premises in Chellaston, you are in fact renting it for a certain amount of time. In recent years flat leases are usually granted for 99 years or 125. Even though this may appear like a long period of time, you should consider a lease extension sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly especially when there are less than eighty years left. Anyone in Chellaston with a lease drawing near to 81 years remaining should seriously think of extending it without delay. Once a lease has under 80 years remaining, under the current legislation the landlord can calculate and demand a greater amount, based on a technical calculation, known as “marriage value” which is payable.
Leasehold properties in Chellaston with in excess of one hundred 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 property. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate charges merit it.
Lender | Requirement |
---|---|
Accord Mortgages | 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. |
Coventry Building Society | 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. |
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. |
Halifax | Minimum 70 years from the date 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. |
Engaging our service will provide you enhanced control over the value of your Chellaston leasehold, as your property will be more valuable and saleable in relation to the lease length should you want to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
In recent months Leo, started to get near to the 80-year threshold with the lease on his studio apartment in Chellaston. In buying his home 19 years ago, the length of the lease was of no importance. Luckily, he recognised he would soon be paying way over the odds for a lease extension. Leo extended the lease just under the wire in January. Leo and the freeholder eventually settled on a premium of £5,000 . If the lease had dipped to less than eighty years, the figure would have increased by a minimum £1,050.
Last October we were called by Mr and Mrs. Y Jackson , who acquired a one bedroom apartment in Chellaston in November 2010. The dilemma was if we could estimate the price would be to prolong the lease by ninety years. Similar residencies in Chellaston with an extended lease were valued around £225,400. The average amount of ground rent was £45 billed per annum. The lease finished in 2088. Given that there were 64 years outstanding we approximated the compensation to the freeholder for the lease extension to be between £15,200 and £17,600 plus costs.
Dr Lydia Bonnet acquired a purpose-built flat in Chellaston in February 2003. The question was if we could approximate the price would be for a ninety year extension to my lease. Comparable residencies in Chellaston with a long lease were valued about £270,000. The mid-range ground rent payable was £55 collected yearly. The lease termination date was on 15 November 2099. Considering the 75 years left we approximated the compensation to the landlord for the lease extension to be within £9,500 and £11,000 not including fees.