It’s an underpublicised truth that a Chesham Bois residential lease is a deteriorating asset. The lease value reduces in proportion to its lease length. The extent of this is not fully appreciated in the first few years due to the loss of value being disguised by increases in the Chesham Bois property market.Where your lease has approximately ninety years left, you should start considering a lease extension. If the number of years remaining slips below eighty years, you will then be required to pay 50% of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add the property Most flat owners in Chesham Bois will be able to extend under the legislation; however a lawyer should be able to clarify whether you are eligibility. In some cases you may not be entitled. There are also strict timetables and procedures to be adhered to once the process has commenced and you will need to be guided by your lawyer for the duration of the process.
It is conventional wisdom that a residential leasehold with more than 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The conveyancing solicitors that we work with undertake Chesham Bois 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 conveyancing solicitor we work with provide it.
14 months ago Elijah, started to get near to the 80-year mark with the lease on his basement apartment in Chesham Bois. Having bought his home twenty years ago, the unexpired term was of no bearing. Thankfully, he noticed he would soon be paying an inflated amount for a lease extension. Elijah was able to extend his lease at the eleventh hour last May. Elijah and the landlord eventually agreed on a premium of £5,000 . If he failed to meet the deadline, the amount would have gone up by at least £1,100.
In 2011 we were approached by Mr F Martinez who, having purchased a basement apartment in Chesham Bois in November 2010. The question was if we could approximate the price could be to prolong the lease by ninety years. Similar residencies in Chesham Bois with a long lease were in the region of £260,000. The mid-range amount of ground rent was £50 billed yearly. The lease came to a finish on 11 March 2098. Given that there were 73 years as a residual term we estimated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 not including fees.
In 2010 we were contacted by Mr and Mrs. F White who, having bought a ground floor flat in Chesham Bois in September 1998. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be for a 90 year lease extension. Identical properties in Chesham Bois with an extended lease were in the region of £264,000. The mid-range amount of ground rent was £60 billed annually. The lease concluded on 21 April 2078. Having 53 years left we approximated the compensation to the landlord to extend the lease to be between £37,100 and £42,800 exclusive of expenses.