On the balance of probabilities where you own a flat in Chellaston you actually own a long leasehold interest over your property
Leasehold residencies in Chellaston with over 100 years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth 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 estate charges justify 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. |
| 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. |
| Yorkshire 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. |
Regardless of whether you are a tenant or a landlord in Chellaston,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Chellaston valuers.
Trailing lengthy negotiations with the landlord of her purpose-built flat in Chellaston, Jessica initiated the lease extension process just as the lease was approaching the critical 80-year mark. The legal work was concluded in June 2014. The landlord’s charges were restricted to a tad over 500 GBP.
Last Autumn we were called by Ms Holly Anderson , who acquired a purpose-built flat in Chellaston in June 2005. The dilemma was if we could estimate the compensation to the landlord would be to prolong the lease by ninety years. Identical flats in Chellaston with 100 year plus lease were in the region of £265,000. The mid-range ground rent payable was £50 billed annually. The lease expiry date was on 7 November 2099. Considering the 73 years outstanding we estimated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 not including fees.
Mr and Mrs. Y Morel moved into a ground floor flat in Chellaston in November 1996. We are asked if we could shed any light on how much (roughly) compensation to the landlord would likely be to extend the lease by ninety years. Comparative homes in Chellaston with an extended lease were valued about £264,000. The average ground rent payable was £60 collected monthly. The lease terminated in 2079. Given that there were 53 years as a residual term we approximated the premium to the landlord for the lease extension to be within £37,100 and £42,800 exclusive of fees.