Chepstow leases on residential properties are gradually diminishing in 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. Most owners of residential leasehold property in Chepstow enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Chepstow you should see if your lease has between 70 and ninety years left. There are good reasons why a Chepstow leaseholder with a lease having around eighty years unexpired should take steps to make sure that a lease extension is put in place without delay
It is conventional wisdom that a residential leasehold with over 100 years remaining is worth roughly the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the property will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Chelsea 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. |
| 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. |
| 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 |
Using our service gives you enhanced control over the value of your Chepstow leasehold, as your property will be more valuable and saleable in relation to the lease length should you want to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Luca owned a high value apartment in Chepstow on the market with a lease of just over 72 years left. Luca informally approached his freeholder being a well known local-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to a rise in the rent to £200 yearly. No ground rent would be due on a lease extension were Luca to exercise his statutory right. Luca procured expert advice and was able to make a more informed decision and deal with the matter and ending up with a market value flat.
Last Winter we were called by Dr F Thomas , who took over the lease of a first floor flat in Chepstow in February 1999. We are asked if we could estimate the premium could be for a ninety year extension to my lease. Comparative properties in Chepstow with an extended lease were in the region of £250,000. The mid-range amount of ground rent was £50 billed per annum. The lease ended in 2095. Given that there were 69 years outstanding we estimated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 exclusive of professional charges.
Mr and Mrs. Y Torres purchased a one bedroom flat in Chepstow in April 2006. The question was if we could estimate the compensation to the landlord could be for a 90 year lease extension. Comparative residencies in Chepstow with 100 year plus lease were valued about £285,000. The average amount of ground rent was £55 invoiced monthly. The lease ended in 2106. Taking into account 80 years as a residual term we approximated the premium to the freeholder for the lease extension to be within £12,400 and £14,200 exclusive of legals.