Chesham leases on residential properties are gradually losing value. if your lease has in the region of 90 years remaining, you should start considering the need for a lease extension. If lease term falls under eighty years, you will then be required to pay 50% of the property's 'marriage value' on top of the standard cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Leasehold owners in Chesham will usually be legally entitled to a lease extension; however it’s a good idea to check with a conveyancer to confirm your eligibility. In certain situations you may not qualify. There are also strict timetables and procedures to comply with once the process has commenced so it’s prudent to be guided by a conveyancing solicitor during the process.
It is conventional wisdom that a property with more than 100 years unexpired lease term is worth roughly the same as a freehold. Where an further 90 years added to any lease with more than 35 years left, the premises will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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. |
Lease extensions in Chesham can be a difficult process. We recommend you secure guidance from a lawyer and surveyor with experience in lease extensions.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience procuring Chesham lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Trailing unsuccessful discussions with the freeholder of her leasehold apartment in Chesham, Emily started the lease extension process as the 80 year threshold was fast coming. The legal work completed in February 2015. The freeholder’s charges were restricted to about 650 pounds.
Last Spring we were phoned by Mr R Scott , who acquired a recently refurbished flat in Chesham in March 2001. The dilemma was if we could shed any light on how much (roughly) premium would be for a 90 year lease extension. Identical premises in Chesham with 100 year plus lease were in the region of £176,200. The mid-range amount of ground rent was £65 billed per annum. The lease lapsed on 23 September 2082. Having 56 years remaining we calculated the compensation to the landlord for the lease extension to be between £29,500 and £34,000 plus professional charges.
Last Spring we were approach by Mr and Mrs. B Carter , who owned a studio flat in Chesham in July 2003. We are asked if we could estimate the compensation to the landlord would likely be to prolong the lease by a further 90 years. Comparative flats in Chesham with 100 year plus lease were worth £242,600. The mid-range ground rent payable was £45 billed monthly. The lease lapsed on 9 March 2093. Having 67 years unexpired we approximated the premium to the freeholder for the lease extension to be between £11,400 and £13,200 exclusive of professional charges.