Chellaston leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease gets more expensive. It is the case that most Chellaston tenants have the right to extend their lease by an additional ninety years by virtue of the 1993 Leasehold Reform Act. If you are a leasehold owner in Chellaston you should check if your lease has between seventy and 90 years left. There are good reasons why a Chellaston flat owner with a lease having around 80 years remaining should take action to ensure that a lease extension is put in place without delay
Leasehold properties in Chellaston with more than one hundred 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 situations there is often little to be gained by purchasing the freehold unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The lawyers that we work with handle Chellaston 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 lawyer we work with provide it.
Milo was the the leasehold proprietor of a high value apartment in Chellaston on the market with a lease of a few days over fifty eight years unexpired. Milo on an informal basis contacted his landlord a well known Manchester-based freehold company for a lease extension. The freeholder was keen to grant an extension on non-statutory terms taking the lease to 125 years subject to a new rent initially set at £100 per annum and doubled every 25 years thereafter. No ground rent would be payable on a lease extension were Milo to invoke his statutory right. Milo obtained expert advice and secured an acceptable deal informally and ending up with a market value flat.
In 2013 we were contacted by Dr Arthur Norbert who, having acquired a one bedroom flat in Chellaston in October 1995. The question was if we could approximate the price could be to extend the lease by 90 years. Comparable residencies in Chellaston with 100 year plus lease were in the region of £260,000. The average ground rent payable was £50 invoiced annually. The lease terminated on 24 April 2096. Given that there were 71 years outstanding we estimated the premium to the landlord to extend the lease to be within £9,500 and £11,000 not including fees.
Dr I Campbell completed a one bedroom flat in Chellaston in April 2004. We are asked if we could shed any light on how much (approximately) premium would likely be for a ninety year extension to my lease. Similar flats in Chellaston with an extended lease were in the region of £254,200. The mid-range amount of ground rent was £60 collected per annum. The lease concluded on 18 June 2076. Given that there were 51 years remaining we approximated the premium to the freeholder for the lease extension to be within £43,700 and £50,600 exclusive of fees.