Chesham leases on residential properties are gradually losing value. if your lease has about ninety years left, you should start thinking about a lease extension. An important point to note is that it is financially advisable for your lease extension to be in place before the term of the existing lease drops under 80 years - otherwise a higher amount will be due. Leasehold owners in Chesham will mostly qualify for a lease extension; however a solicitor will confirm your eligibility. In certain cases you may not qualify. There are also strict timetables and formalities to comply with once the process has started so it’s sensible to be guided by a conveyancing solicitor during the process.
It is conventional wisdom that a residential leasehold with more than 100 years remaining is worth roughly the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Regardless of whether you are a tenant or a freeholder in Chesham,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Chesham valuers.
Hunter owned a conversion flat in Chesham being marketed with a lease of fraction over fifty eight years left. Hunter informally approached his freeholder a well known London-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years on the basis of a new rent to start with set at £200 per annum and doubled every twenty five years thereafter. No ground rent would be due on a lease extension were Hunter to exercise his statutory right. Hunter obtained expert legal guidance and was able to make an informed decision and handle with the matter and readily saleable.
Last Winter we were e-mailed by Mr and Mrs. T Hall , who owned a one bedroom apartment in Chesham in July 1999. The question was if we could shed any light on how much (approximately) premium would be for a 90 year extension to my lease. Similar premises in Chesham with 100 year plus lease were valued about £254,200. The mid-range amount of ground rent was £60 collected quarterly. The lease ended in 2077. Given that there were 51 years remaining we estimated the compensation to the landlord for the lease extension to be within £43,700 and £50,600 plus professional charges.
In 2011 we were e-mailed by Dr Jude Rose who, having acquired a one bedroom flat in Chesham in October 2009. We are asked if we could shed any light on how much (approximately) premium would be for a 90 year extension to my lease. Similar homes in Chesham with a long lease were valued around £210,600. The average ground rent payable was £45 collected every twelve months. The lease finished on 26 February 2088. Given that there were 62 years unexpired we approximated the compensation to the freeholder for the lease extension to be between £18,100 and £20,800 exclusive of fees.