The re-sale value of a leasehold property in Chesham depends on how many years the lease has left to run. If it is near to or fewer than eighty years you should foresee problems on re-sale, so it is recommended to arrange for a lease extension ahead of buying. It is ideal to start the lease extension process when the lease still has 82 years to run so that a lease extension can be concluded well before the 80 year threshold. Statute enables Chesham qualifying lessees to a ninety year extension added to their remaining lease term (ie if your lease has fifty years remaining the statutory lease extension will provide a new term of 140 years). The reason of the valuation is to arrive at an opinion of the amount payable by the lessee to the freeholder for the purchase of the lease extension.
Leasehold residencies in Chesham with over 100 years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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. |
Irrespective of whether you are a tenant or a landlord in Chesham,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Chesham valuers.
Muhammad was the the leasehold proprietor of a high value flat in Chesham on the market with a lease of a few days over 61 years unexpired. Muhammad on an informal basis spoke with his freeholder a well known local-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years on the basis of a rise in the rent to £125 per annum. Ordinarily, ground rent would not be payable on a lease extension were Muhammad to exercise his statutory right. Muhammad obtained expert legal guidance and secured satisfactory resolution informally and sell the property.
Last year we were phoned by Mr L Martin , who took over the lease of a garden flat in Chesham in August 1998. The question was if we could shed any light on how much (roughly) premium would be for a ninety year lease extension. Comparative homes in Chesham with an extended lease were valued about £270,000. The mid-range amount of ground rent was £55 invoiced every twelve months. The lease finished in 2100. Having 74 years as a residual term we approximated the compensation to the freeholder to extend the lease to be between £9,500 and £11,000 exclusive of costs.
In 2011 we were phoned by Dr V Morel who, having purchased a first floor apartment in Chesham in September 1998. The question was if we could shed any light on how much (roughly) premium would be to extend the lease by 90 years. Similar homes in Chesham with a long lease were worth £166,400. The average amount of ground rent was £60 invoiced per annum. The lease ran out in 2080. Considering the 54 years as a residual term we approximated the premium to the freeholder to extend the lease to be between £32,300 and £37,400 plus costs.