The only way is down when it comes to Cheslyn Hay lease terms. Cheslyn Hay properties that have a residual term lower than 80 years will reduce in value even faster, and the cost of extending your lease will increase.
Leasehold premises in Cheslyn Hay with over 100 years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little upside in buying the freehold unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Halifax | Minimum 70 years from the date 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. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| 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 |
| 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. |
The conveyancers that we work with procure Cheslyn Hay lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
Off the back of unsuccessful correspondence with the freeholder of her one bedroom apartment in Cheslyn Hay, Imogen started the lease extension process as the eighty year deadline was rapidly approaching. The lease extension completed in November 2008. The landlord’s fees were kept to an absolute minimum.
Last Christmas we were e-mailed by Ms G Nguyen , who bought a ground floor flat in Cheslyn Hay in September 2003. The question was if we could estimate the compensation to the landlord would be to prolong the lease by 90 years. Similar homes in Cheslyn Hay with a long lease were worth £183,600. The average ground rent payable was £65 billed yearly. The lease expired in 2083. Considering the 57 years outstanding we calculated the premium to the landlord for the lease extension to be between £28,500 and £33,000 plus legals.
Dr S López acquired a ground floor apartment in Cheslyn Hay in April 2010. We are asked if we could shed any light on how much (approximately) premium could be for a 90 year lease extension. Similar premises in Cheslyn Hay with a long lease were worth £245,000. The mid-range ground rent payable was £50 collected yearly. The lease finished in 2094. Having 68 years outstanding we calculated the premium to the landlord to extend the lease to be between £9,500 and £11,000 exclusive of expenses.