Chesterfield leases on residential properties are gradually losing value. Where your lease has in the region of 90 years unexpired, you should start considering the need for a lease extension. If lease term is less than 80 years, you will then have to pay half of the property's 'marriage value' on top of the usual cost of the lease extension to your landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Flat owners in Chesterfield will usually be legally entitled to a lease extension; however It would be wise to check with a lawyer to confirm your eligibility. In certain situations you may not qualify. There are prescribed deadlines and procedures to comply with once the process has commenced so it’s prudent to be guided by a conveyancer during the process.
Leasehold premises in Chesterfield with more than one hundred years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Irrespective of whether you are a tenant or a freeholder in Chesterfield,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Chesterfield valuers.
Following lengthy correspondence with the freeholder of her leasehold apartment in Chesterfield, Niamh initiated the lease extension process as the eighty year threshold was rapidly advancing. The legal work was finalised in January 2008. The landlord’s fees were kept to an absolute minimum.
In 2011 we were e-mailed by Mrs Y Bernard who, having completed a purpose-built apartment in Chesterfield in July 2002. The question was if we could shed any light on how much (roughly) premium would likely be for a 90 year lease extension. Similar homes in Chesterfield with 100 year plus lease were in the region of £261,600. The average ground rent payable was £60 collected quarterly. The lease elapsed on 12 September 2078. Taking into account 52 years unexpired we calculated the premium to the landlord to extend the lease to be within £39,000 and £45,000 not including fees.
Last Summer we were e-mailed by Mrs Chloe Laurent , who bought a garden flat in Chesterfield in July 2000. The dilemma was if we could shed any light on how much (approximately) price would likely be for a ninety year extension to my lease. Similar flats in Chesterfield with a long lease were valued about £218,000. The average ground rent payable was £45 collected yearly. The lease came to a finish on 10 August 2089. Taking into account 63 years left we estimated the premium to the landlord to extend the lease to be between £17,100 and £19,800 exclusive of fees.