As the the remaining lease term of a Chesham Bois domestic lease diminished so does its value and therefore the value of your property. If the residual term has, beyond one hundred years remaining then this decrease may be negligible that being said there will become a point in time when a lease has fewer than 80 years left as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the primary rational as to why you should consider extending without delay. Most flat owners in Chesham Bois will meet the qualifying criteria; however a conveyancer can advise if you qualify for a lease extension. In certain situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
Leasehold residencies in Chesham Bois with more than one hundred years left on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| 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. |
| 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. |
| Halifax | Minimum 70 years from the date 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 better control over the value of your Chesham Bois leasehold, as your property will be more valuable and marketable in terms of lease length should you want to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Trailing unsuccessful correspondence with the landlord of her studio flat in Chesham Bois, Holly initiated the lease extension process as the 80 year deadline was rapidly advancing. The lease extension completed in November 2010. The freeholder’s charges were restricted to under 450 pounds.
In 2012 we were e-mailed by Dr H Mason who, having acquired a first floor apartment in Chesham Bois in September 2009. The dilemma was if we could estimate the price would be to prolong the lease by an additional years. Comparable premises in Chesham Bois with a long lease were valued around £227,800. The average amount of ground rent was £45 billed per annum. The lease expiry date was in 2089. Given that there were 65 years outstanding we estimated the premium to the landlord for the lease extension to be within £13,300 and £15,400 exclusive of expenses.
In 2011 we were contacted by Mr Toby Michel who, having bought a basement flat in Chesham Bois in July 2008. We are asked if we could estimate the compensation to the landlord could be for a ninety year extension to my lease. Comparative homes in Chesham Bois with a long lease were valued around £275,000. The average amount of ground rent was £55 billed yearly. The lease finished in 2100. Given that there were 76 years remaining we calculated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 exclusive of fees.