The market value of a leasehold property in Cheslyn Hay depends on how many years the lease has remaining. If it is near to or less than eighty years you should envisage difficulties on re-sale, so it is advisable to arrange for a lease extension before buying. It is ideal to start the process of extending the lease is when a lease still has 82 years to run so that formalities can be finalised ahead of the 80 year cut off point. Current legislation entitles Cheslyn Hay qualifying lessees to a ninety year extension added to their remaining lease term (ie if your lease has 50 years remaining the statutory lease extension will provide a new term of 140 years). The intention of the valuation is to arrive at an opinion of the premium payable by the lessee to the freeholder for the purchase of the lease extension.
Leasehold residencies in Cheslyn Hay with in excess of 100 years remaining 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 buying the reversionary interest unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| Godiva Mortgages | 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. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Cheslyn Hay can be a difficult process. We recommend you get professional help from a conveyancing solicitor and valuer well versed in the legislation and lease extension process.
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 in-depth market knowledge dealing with Cheslyn Hay lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
After lengthy negotiations with the freeholder of her basement flat in Cheslyn Hay, Abigail started the lease extension process just as her lease was coming close to the all-important 80-year mark. The legal work was finalised in March 2008. The freeholder’s charges were restricted to approximately 650 GBP.
In 2011 we were contacted by Mrs G Hill who, having moved into a first floor apartment in Cheslyn Hay in August 1997. The question was if we could approximate the compensation to the landlord would be for a 90 year lease extension. Similar properties in Cheslyn Hay with an extended lease were in the region of £210,600. The average amount of ground rent was £45 collected quarterly. The lease lapsed in 2088. Having 62 years unexpired we estimated the compensation to the landlord for the lease extension to be between £18,100 and £20,800 plus legals.
In 2013 we were e-mailed by Mr Lewis Patel who, having was assigned a lease of a purpose-built flat in Cheslyn Hay in June 2004. We are asked if we could approximate the premium could be for a ninety year lease extension. Similar residencies in Cheslyn Hay with 100 year plus lease were worth £265,000. The mid-range ground rent payable was £50 billed per annum. The lease terminated on 8 May 2099. Considering the 73 years remaining we calculated the premium to the landlord to extend the lease to be within £9,500 and £11,000 plus professional charges.