Owning a flat usually means owning a lease of the property, which has a set term of years. The lease will usually be granted for a prescribed period of time , ordinarily 99 or 125 years, although we have come across longer and shorter terms in Chesham. Clearly, the period of lease left reduces as time goes by. This is often overlooked and only becomes a problem when the residence has to be disposed of or refinanced. The fewer the years remaining the lower the value of the property and the more expensive it will be to extend the lease. Qualifying leaseholders in Chesham have the right to extend the lease for an additional 90 years in accordance with Leasehold Reform legislation. Please give careful deliberation before putting off your Chesham lease extension. Putting off the cost now likely increases the price you will ultimately incur to extend your lease
It is conventional wisdom that a property with more than one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years ahead.
| 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
Using our service will provide you enhanced control over the value of your Chesham leasehold, as your property will be more valuable and marketable in respect of lease length should you want to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Last Autumn Oliver, started to get near to the eighty-year threshold with the lease on his studio apartment in Chesham. Having purchased his home 18 years ago, the unexpired term was of little relevance. As luck would have it, he noticed he needed to take steps soon on Extending the lease. Oliver extended the lease just under the wire in June. Oliver and the freeholder via the management company eventually settled on an amount of £5,500 . If the lease had dipped lower than eighty years, the figure would have escalated by at least £950.
Mr R Harris moved into a purpose-built apartment in Chesham in August 1996. We are asked if we could approximate the compensation to the landlord would likely be to extend the lease by 90 years. Identical premises in Chesham with a long lease were valued about £261,600. The average amount of ground rent was £60 billed every twelve months. The lease elapsed in 2078. Considering the 52 years unexpired we approximated the compensation to the freeholder for the lease extension to be between £39,000 and £45,000 exclusive of costs.
In 2014 we were contacted by Mr and Mrs. F Jones who, having acquired a studio apartment in Chesham in August 1997. The question was if we could approximate the premium would be to prolong the lease by a further 90 years. Identical residencies in Chesham with a long lease were valued around £218,000. The mid-range ground rent payable was £45 collected monthly. The lease concluded on 3 July 2089. Considering the 63 years unexpired we calculated the premium to the freeholder to extend the lease to be within £17,100 and £19,800 plus expenses.