Chesterfield leases on domestic properties are gradually losing value. if your lease has in the region of ninety years left, you should start thinking about a lease extension. It is important to recognise that it is that it is desirable for a lease extension to be in place before the term of the existing lease dips below 80 years - otherwise a higher amount will be due. Leasehold owners in Chesterfield will usually be legally entitled to a lease extension; however a solicitor will check if you qualify. In certain circumstances you may not qualify. There are also strict deadlines and formalities to comply with once the process has started so it’s best to be guided by a conveyancer during the process.
Leasehold premises in Chesterfield with over 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 upside in purchasing the reversionary interest unless savings on ground rent and service charges justify it.
|Barclays plc|| Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below).|
Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office.
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;
|Birmingham Midshires||Minimum 70 years from the date of the mortgage.|
|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.|
|Halifax||Minimum 70 years from the date of the mortgage.|
|TSB||Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption.|
The conveyancing solicitors that we work with procure Chesterfield 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.
Benjamin was the the leasehold owner of a studio flat in Chesterfield being marketed with a lease of a few days over sixty years remaining. Benjamin informally contacted his freeholder being a well known Bristol-based freehold company for a lease extension. The freeholder was keen to give an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent at the outset set at £150 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Benjamin to exercise his statutory right. Benjamin procured expert legal guidance and was able to make an informed decision and deal with the matter and readily saleable.
Last year we were approach by Dr Nathan Gray , who was assigned a lease of a studio apartment in Chesterfield in July 1999. We are asked if we could estimate the compensation to the landlord could be for a 90 year extension to my lease. Comparative flats in Chesterfield with 100 year plus lease were in the region of £166,400. The mid-range amount of ground rent was £60 collected per annum. The lease elapsed on 11 February 2076. Considering the 54 years left we calculated the premium to the landlord for the lease extension to be between £32,300 and £37,400 exclusive of legals.
Last May we were e-mailed by Mr and Mrs. R Ricardo , who purchased a first floor flat in Chesterfield in June 1998. The dilemma was if we could approximate the premium would likely be to extend the lease by an additional years. Similar residencies in Chesterfield with 100 year plus lease were valued about £227,800. The average amount of ground rent was £45 invoiced monthly. The lease termination date was on 1 April 2087. Having 65 years as a residual term we calculated the compensation to the landlord to extend the lease to be within £13,300 and £15,400 not including costs.