Unfortunately that a Chesham Bois residential lease is a deteriorating asset. As the lease term reduces so does the value of the property. The extent of this is not fully appreciated in the early years due to the depreciation being disguised by increases in the Chesham Bois property prices.Once your lease gets to 85ish years, you need to start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease falls below 80 years - otherwise a higher premium will be due. Most flat owners in Chesham Bois will be able to extend under the legislation; however a conveyancer will be able to clarify whether you qualify for an extension. In some situations you may not qualify. There are also strict deadlines and procedures to follow once the process has commenced and you will need to be guided by your conveyancing solicitor from beginning to end of the formalities.
Leasehold properties in Chesham Bois with more than one hundred years outstanding 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 upside in purchasing the freehold unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Birmingham Midshires | 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
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 relation to the lease length should you decide to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Off the back of unsuccessful correspondence with the freeholder of her studio flat in Chesham Bois, Madeleine started the lease extension process just as her lease was coming close to the critical 80-year deadline. The lease extension completed in September 2009. The freeholder’s charges were kept to an absolute minimum.
Mr and Mrs. M Clarke purchased a recently refurbished apartment in Chesham Bois in February 2003. The question was if we could approximate the price could be for a 90 year lease extension. Similar residencies in Chesham Bois with a long lease were valued around £210,600. The mid-range ground rent payable was £45 invoiced yearly. The lease came to a finish in 2087. Having 62 years outstanding we approximated the compensation to the freeholder to extend the lease to be within £18,100 and £20,800 not including fees.
In 2010 we were called by Dr J Roux who, having bought a studio flat in Chesham Bois in August 2007. We are asked if we could approximate the compensation to the landlord would be to extend the lease by ninety years. Similar flats in Chesham Bois with 100 year plus lease were worth £260,000. The mid-range ground rent payable was £50 collected per annum. The lease ended on 26 June 2098. Considering the 73 years outstanding we estimated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 exclusive of costs.