The re-sale value of a leasehold property in Cheslyn Hay depends on how many years the lease has remaining. If it is near to or fewer than eighty years you should expect problems on re-sale, so it is recommended to arrange for a lease extension before purchasing. Ideally one should start the process of extending the lease is when a lease still has 82 years unexpired so that a lease extension can be finalised prior to the 80 year cut off point. Current legislation entitles Cheslyn Hay qualifying lessees to obtain a new lease which will be for the current unexpired lease term plus a further term of ninety years. The purpose of the valuation is to arrive at an opinion of the sum payable by the lessee to the freeholder for the acquisition of the lease extension.
It is generally accepted that a property with more than one hundred years unexpired lease term is worth roughly the same as a freehold. Where an additional 90 years added to any lease with more than 45 years left, the residence will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Coventry Building Society | 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | 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 75 years plus the term of the mortgage at the outset of the mortgage. |
| 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 |
The lawyers that we work with handle 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.
Two years ago Riley, came critically near to the 80-year threshold with the lease on his leasehold apartment in Cheslyn Hay. In buying his home two decades ago, the lease term was of little relevance. Luckily, he noticed he would soon be paying an escalated premium for a lease extension. Riley arranged for a lease extension just under the wire in January. Riley and the freeholder in the end agreed on sum of £6,000 . If the lease had slid below eighty years, the premium would have gone up by a minimum £1,050.
Last Spring we were phoned by Ms U Leroy , who was assigned a lease of a studio flat in Cheslyn Hay in January 1998. The question was if we could estimate the premium would be for a ninety year extension to my lease. Identical flats in Cheslyn Hay with 100 year plus lease were worth £265,000. The mid-range amount of ground rent was £50 billed annually. The lease concluded on 1 November 2100. Considering the 74 years unexpired we estimated the premium to the landlord to extend the lease to be between £9,500 and £11,000 not including costs.
In 2013 we were contacted by Mr Austin Taylor who, having purchased a first floor flat in Cheslyn Hay in July 2002. The question was if we could shed any light on how much (roughly) premium would be to prolong the lease by ninety years. Comparative residencies in Cheslyn Hay with an extended lease were in the region of £166,400. The average amount of ground rent was £60 invoiced yearly. The lease finished in 2080. Taking into account 54 years remaining we approximated the premium to the freeholder to extend the lease to be between £32,300 and £37,400 not including costs.