With a long leasehold premises in Chepstow, you are actually purchasing an entitlement to live in a property for a prescribed time frame. In recent years flat leases typically tend to be for 99 years or 125. Many leasehold owners become complacent as this seems like a lengthy period of time, you should think about a lease extension sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease gets disproportionately more expensive particularly when there are fewer than eighty years remaining. Anyone in Chepstow with a lease nearing 81 years left should seriously think of extending it without delay. When a lease has under eighty years outstanding, under the current Act the freeholder can calculate and charge a greater premium, based on a technical computation, strangely termed as “marriage value” which is payable.
Leasehold premises in Chepstow with more than 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 property. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Chelsea Building Society | |
| Leeds Building Society | |
| Skipton Building Society | |
| Yorkshire Building Society |
The lawyers that we work with procure Chepstow 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.
During the course of the last few months Sam, started to get near to the eighty-year mark with the lease on his first floor apartment in Chepstow. Having purchased his home two decades ago, the unexpired term was of no relevance. Fortunately, it dawned on him that he would imminently be paying way over the odds for a lease extension. Sam was able to extend his lease just under the wire in March. Sam and the landlord eventually settled on the final figure of £5,500 . If he failed to meet the deadline, the premium would have increased by at least £1,050.
Last Winter we were e-mailed by Dr Eli Smith , who moved into a one bedroom apartment in Chepstow in July 2000. We are asked if we could approximate the premium would likely be for a ninety year lease extension. Comparable residencies in Chepstow with a long lease were valued around £210,600. The average ground rent payable was £45 invoiced quarterly. The lease finished in 2088. Taking into account 62 years as a residual term we estimated the compensation to the freeholder to extend the lease to be between £18,100 and £20,800 plus fees.
In 2010 we were phoned by Mr E Sánchez who, having moved into a garden apartment in Chepstow in January 2002. The question was if we could shed any light on how much (approximately) compensation to the landlord would likely be for a 90 year extension to my lease. Identical properties in Chepstow with an extended lease were valued about £265,000. The average amount of ground rent was £50 billed yearly. The lease ended on 11 April 2099. Given that there were 73 years left we estimated the compensation to the landlord to extend the lease to be between £9,500 and £11,000 not including professional charges.