Owning a flat usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. The lease will ordinarily be granted for a fixed period of time , ordinarily 99 or 125 years, although we have witnessed longer and shorter terms in Cheslyn Hay. Inevitably, the term of lease remaining shortens as time goes by. This may pass by relatively unnoticed when the flat or house has to be disposed of or refinanced. The shorter the lease the less it is worth and the more expensive it will be to procure a lease extension. Qualifying leaseholders in Cheslyn Hay have the legal entitlement to extend the lease for an additional ninety years in accordance with Leasehold Reform legislation. You should give careful consideration before delaying your Cheslyn Hay lease extension. Putting off that expense now simply increases the price you will ultimately have to pay to extend your lease
It is generally considered that a residential leasehold with in excess of 100 years unexpired lease term is worth approximately the same as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | |
| Godiva Mortgages | |
| National Westminster Bank | |
| Skipton Building Society | |
| The Mortgage Works |
Using our service gives you enhanced control over the value of your Cheslyn Hay leasehold, as your property will be more valuable and marketable in relation to the lease length should you decide to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Teddy owned a conversion apartment in Cheslyn Hay on the market with a lease of a little over 72 years unexpired. Teddy informally spoke with his landlord a well known London-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to give an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £100 annually. No ground rent would be due on a lease extension were Teddy to invoke his statutory right. Teddy procured expert advice and was able to make an informed decision and deal with the matter and readily saleable.
In 2013 we were contacted by Dr Leo Rogers who, having was assigned a lease of a one bedroom flat in Cheslyn Hay in May 2010. We are asked if we could shed any light on how much (roughly) compensation to the landlord could be to extend the lease by 90 years. Comparable flats in Cheslyn Hay with 100 year plus lease were valued around £250,000. The mid-range ground rent payable was £50 invoiced per annum. The lease terminated in 2095. Considering the 69 years unexpired we calculated the premium to the landlord to extend the lease to be within £9,500 and £11,000 not including fees.
Mr Dylan Walker completed a recently refurbished flat in Cheslyn Hay in July 2008. The dilemma was if we could estimate the compensation to the landlord would likely be for a ninety year extension to my lease. Similar homes in Cheslyn Hay with a long lease were valued around £285,000. The average amount of ground rent was £55 invoiced every twelve months. The lease terminated in 2106. Given that there were 80 years outstanding we calculated the compensation to the freeholder for the lease extension to be between £12,400 and £14,200 not including fees.