Chepstow leases on domestic properties are gradually losing value. Where your lease has approximately 90 years remaining, you should start considering the need for a lease extension. 80 years is a significant number: when the remaining term of a lease dips below this level then you begin incurring an additional element called marriage value. Leasehold owners in Chepstow will usually be legally entitled to a lease extension; however It would be wise to check with a conveyancer to check your eligibility. In some circumstances you may not qualify. There are prescribed deadlines and procedures to follow once the process is triggered so it’s prudent to be guided by a lawyer during the process.
Leasehold properties in Chepstow with in excess of 100 years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by 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. |
| 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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. |
Using our service gives you increased control over the value of your Chepstow leasehold, as your property will be more valuable and marketable in respect of lease length should you want to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Subsequent to lengthy discussions with the landlord of her studio flat in Chepstow, Ella initiated the lease extension process as the eighty year mark was swiftly advancing. The legal work was finalised in September 2010. The landlord’s fees were kept to an absolute minimum.
Last Winter we were phoned by Mr and Mrs. H Lee , who moved into a one bedroom apartment in Chepstow in September 2008. We are asked if we could approximate the premium would be for a 90 year lease extension. Comparative homes in Chepstow with 100 year plus lease were valued around £173,800. The average amount of ground rent was £60 billed every twelve months. The lease end date was in 2081. Taking into account 55 years as a residual term we estimated the premium to the freeholder for the lease extension to be within £31,400 and £36,200 plus legals.
In 2009 we were contacted by Mr S Rodríguez who, having acquired a one bedroom apartment in Chepstow in June 1998. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord would likely be for a ninety year lease extension. Identical residencies in Chepstow with 100 year plus lease were valued around £235,200. The average ground rent payable was £45 billed annually. The lease finished on 25 August 2092. Considering the 66 years left we approximated the compensation to the landlord to extend the lease to be within £12,400 and £14,200 plus fees.