With a residential leasehold property in Chepstow, you are actually buying a right to live in a property for a prescribed time frame. Modern flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you should think about extending the lease sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease gets disproportionately more expensive particularly when there are fewer than eighty years remaining. Residents in Chepstow with a lease drawing near to 81 years remaining should seriously consider extending it as soon as possible. Once the lease term has less than eighty years remaining, under the current Act the freeholder is entitled to calculate and levy a larger premium, assessed on a technical computation, known as “marriage value” which is payable.
Leasehold properties in Chepstow with over 100 years outstanding on the lease are often 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 buying the freehold unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Regardless of whether you are a tenant or a freeholder in Chepstow,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Chepstow valuers.
In recent months Cameron, came very near to the eighty-year threshold with the lease on his leasehold apartment in Chepstow. Having purchased his property 19 years previously, the unexpired term was of little relevance. by good luck, it dawned on him that he needed to take steps soon on a lease extension. Cameron arranged for a lease extension at the eleventh hour last January. Cameron and the freeholder eventually agreed on sum of £5,500 . If he failed to meet the deadline, the premium would have gone up by at least £1,125.
Ms H Fournier owned a purpose-built flat in Chepstow in June 1998. We are asked if we could shed any light on how much (roughly) premium would be to extend the lease by 90 years. Similar properties in Chepstow with an extended lease were in the region of £265,000. The mid-range ground rent payable was £55 collected annually. The lease expiry date was in 2100. Having 74 years unexpired we estimated the compensation to the landlord for the lease extension to be within £9,500 and £11,000 plus costs.
Mr Aiden Walker bought a purpose-built apartment in Chepstow in March 2000. The question was if we could shed any light on how much (approximately) price would be to prolong the lease by a further 90 years. Comparative residencies in Chepstow with 100 year plus lease were valued around £166,400. The average ground rent payable was £60 billed annually. The lease expiry date was in 2080. Taking into account 54 years outstanding we approximated the compensation to the landlord for the lease extension to be within £32,300 and £37,400 exclusive of expenses.