There is no doubt about it a leasehold flat or house in Chesham Bois is a wasting asset as a result of the diminishing lease term. Where the lease has, more than 125 years to run then this decrease may be negligible that being said there will become a stage when a lease has under than 80 years remaining as part of the premium you will incur is what is termed as a marriage value. This could increase markedly the cost. It is the primary rational as to why you should extend the lease sooner as opposed to later. Most flat owners in Chesham Bois will qualify for this right; however a conveyancer will be able to advise if you are eligible for a lease extension. In limited situations you may not qualify, the most frequent reason being that you have owned the property for less than two years.
It is conventional wisdom that a residential leasehold with in excess of 100 years unexpired lease term is worth approximately the same as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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 |
Irrespective of whether you are a tenant or a freeholder in Chesham Bois,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 Chesham Bois valuers.
Trailing unsuccessful discussions with the freeholder of her first floor flat in Chesham Bois, Naomi started the lease extension process just as the lease was approaching the all-important eighty-year deadline. The legal work was concluded in June 2012. The landlord’s fees were restricted to a tad over 600 GBP.
Dr S Torres purchased a purpose-built flat in Chesham Bois in June 1995. The question was if we could shed any light on how much (approximately) price would be to extend the lease by ninety years. Identical residencies in Chesham Bois with a long lease were in the region of £235,200. The average amount of ground rent was £45 billed annually. The lease ended on 3 August 2091. Having 66 years left we estimated the premium to the landlord for the lease extension to be within £12,400 and £14,200 exclusive of legals.
In 2010 we were e-mailed by Mr and Mrs. G Campbell who, having moved into a garden apartment in Chesham Bois in May 2012. The question was if we could approximate the premium would be to prolong the lease by a further 90 years. Comparative premises in Chesham Bois with 100 year plus lease were worth £275,000. The average amount of ground rent was £55 billed annually. The lease terminated in 2102. Given that there were 77 years as a residual term we calculated the compensation to the landlord for the lease extension to be within £13,300 and £15,400 plus expenses.