Chessington residential property held on a long lease is a wasting asset as the leaseholder merely owns the property for a set term.
It is conventional wisdom that a property with in excess of 100 years remaining is worth roughly the same as a freehold. Where an additional 90 years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start 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 |
| 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. |
Engaging our service gives you increased control over the value of your Chessington leasehold, as your property will be more valuable and marketable in respect of lease length should you decide to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Off the back of protracted discussions with the freeholder of her leasehold flat in Chessington, Courtney commenced the lease extension process as the eighty year deadline was fast coming. The transaction was finalised in February 2011. The landlord’s fees were restricted to approximately 500 GBP.
In 2013 we were contacted by Mr and Mrs. Y Edwards who, having owned a one bedroom flat in Chessington in February 2009. We are asked if we could approximate the price could be to extend the lease by 90 years. Similar premises in Chessington with an extended lease were worth £250,000. The average amount of ground rent was £50 billed every twelve months. The lease came to a finish on 19 March 2093. Given that there were 69 years remaining we approximated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 not including expenses.
An example of a Lease Extension case for a Chessington residence is Flat D 15 Claremont Gardens in September 2013. TheTribunal determined in accordance with section48 and Schedule13 of the Leasehold Reform,Housing and Urban Development Act 1993 that the premium for the extended lease should be fourteen thousand one hundred and eighty seven pounds (£14,187.00) This case related to 1 flat.