Chesham leases on domestic properties are gradually losing value. Where your lease has about ninety years remaining, you should start thinking about a lease extension. It is important to recognise that it is that it is desirable for your lease extension to be in place before the term of the existing lease falls lower than 80 years - otherwise a higher premium will be due. Flat owners in Chesham will usually be legally entitled to a lease extension; however a solicitor should be able check your eligibility. In certain situations you may not qualify. There are also strict deadlines and procedures to follow once the process is triggered so it’s sensible to be guided by a conveyancer during the process.
It is generally considered that a residential leasehold with in excess of 100 years remaining is worth roughly the same 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 in the future.
| Lender | Requirement |
|---|---|
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Yorkshire 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. |
Using our service will provide you better control over the value of your Chesham leasehold, as your property will be more valuable and marketable in relation to the lease length should you want to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
In the wake of 6 months of unsuccessful correspondence with the freeholder of her first floor apartment in Chesham, Alicia started the lease extension process just as her lease was nearing the all-important 80-year mark. The transaction completed in April 2011. The freeholder’s costs were kept to an absolute minimum.
Dr Yasmin Pérez moved into a purpose-built apartment in Chesham in January 1998. We are asked if we could approximate the premium would be to prolong the lease by ninety years. Comparable homes in Chesham with an extended lease were worth £280,000. The average ground rent payable was £55 billed quarterly. The lease terminated in 2102. Taking into account 77 years unexpired we calculated the premium to the freeholder to extend the lease to be within £13,300 and £15,400 exclusive of fees.
In 2010 we were contacted by Mr and Mrs. W Bertrand who, having moved into a recently refurbished apartment in Chesham in September 2000. The question was if we could approximate the price would likely be for a ninety year extension to my lease. Similar premises in Chesham with a long lease were valued around £183,600. The mid-range amount of ground rent was £65 collected annually. The lease ended in 2082. Considering the 57 years left we approximated the premium to the landlord for the lease extension to be between £28,500 and £33,000 exclusive of legals.