It’s an underpublicised truth that a Chesterton residential lease is a wasting asset. As the lease term diminishes so does the value of the property. The extent of this is not fully appreciated in the early years due to the loss of value being disguised by increases in the Chesterton property prices.Once your lease gets to 85ish years, you should start considering a lease extension. If the number of years remaining dips under 80 years, you will end up paying 50% of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. The marriage fee is the amount of additional value that a lease extension will add the property The majority of flat owners in Chesterton will be able to extend under the legislation; however a conveyancing solicitor will be able to confirm if you are eligibility. In some cases you may not qualify. There are also strict deadlines and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancer throughout the formalities.
It is conventional wisdom that a residential leasehold with more than one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional 90 years added to any lease with more than 35 years remaining, the residence will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | |
| National Westminster Bank | |
| Santander | |
| TSB | |
| The Mortgage Works |
Lease extensions in Chesterton can be a difficult process. We recommend you get guidance from a conveyancer and valuer with experience in lease extensions.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience procuring Chesterton lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Two years ago Alex, came precariously close to the 80-year mark with the lease on his studio flat in Chesterton. Having bought his property two decades ago, the lease term was of no interest. Luckily, he realised he needed to take steps soon on Extending the lease. Alex arranged for a lease extension just in the nick of time in September. Alex and the freeholder in the end agreed on sum of £5,000 . If the lease had descended lower than 80 years, the premium would have increased by at least £900.
Mrs Amber Morris was assigned a lease of a basement flat in Chesterton in July 2000. The question was if we could shed any light on how much (roughly) premium could be to extend the lease by ninety years. Identical premises in Chesterton with a long lease were in the region of £166,800. The average ground rent payable was £50 collected monthly. The lease expired on 27 September 2076. Considering the 50 years left we approximated the compensation to the landlord to extend the lease to be between £32,300 and £37,400 exclusive of legals.
In 2013 we were e-mailed by Mr and Mrs. D François who, having was assigned a lease of a garden flat in Chesterton in November 1999. The question was if we could estimate the compensation to the landlord could be to extend the lease by ninety years. Similar properties in Chesterton with an extended lease were worth £280,000. The average amount of ground rent was £45 collected quarterly. The lease finished on 17 August 2096. Given that there were 70 years left we calculated the compensation to the freeholder to extend the lease to be within £12,400 and £14,200 plus fees.