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 90 years under the 1993 Leasehold Reform Act. Where you are a leasehold owner in Chellaston you really ought to check if your lease has between seventy and 90 years remaining. There are compelling reasons why a Chellaston leaseholder with a lease having around eighty years unexpired should take action to make sure that a lease extension is put in place without delay
Leasehold properties in Chellaston with in excess of 100 years remaining on the lease are often 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 freehold unless savings on ground rent and estate charges justify it.
|Bank of Scotland|| Minimum 70 years from the date of the mortgage.|
|Barclays plc||Mortgage term plus 25 years provided that leases of less than 85 years are be referred to us for approval.|
|Barnsley Building Society||60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term.|
|Halifax|| Minimum 70 years from the date of the mortgage.|
|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.|
The conveyancers 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 conveyancer we work with provide it.
In the wake of 6 months of unsuccessful discussions with the landlord of her first floor flat in Chellaston, Anna commenced the lease extension process just as her lease was nearing the critical eighty-year threshold. The transaction was concluded in October 2015. The freeholder’s costs were negotiated to below 600 GBP.
Mrs I Evans took over the lease of a purpose-built apartment in Chellaston in May 2000. We are asked if we could approximate the price would likely be for a ninety year lease extension. Similar residencies in Chellaston with 100 year plus lease were valued around £200,800. The average ground rent payable was £65 collected yearly. The lease ran out on 25 January 2080. Taking into account 60 years outstanding we estimated the premium to the landlord for the lease extension to be within £20,900 and £24,200 not including expenses.
Last Spring we were approach by Mr and Mrs. K Martin , who completed a purpose-built flat in Chellaston in January 1999. We are asked if we could estimate the premium could be for a ninety year extension to my lease. Similar homes in Chellaston with a long lease were in the region of £255,000. The average ground rent payable was £50 invoiced per annum. The lease came to a finish on 5 August 2091. Considering the 71 years unexpired we calculated the premium to the landlord for the lease extension to be within £9,500 and £11,000 plus fees.