The re-sale value of a leasehold property in Chesterton depends on how long the lease has remaining. If it is near to or fewer than eighty years you should envisage problems on re-sale, so it is recommended to arrange for the lease to be extended ahead of purchasing. Ideally one should start the lease extension process when a lease still has 82 years to run so that formalities can be concluded prior to the eighty year mark. Leasehold Reform legislation enables Chesterton qualifying lessees to an additional term of 90 years in addition to the unexpired term, at a peppercorn rent (no ground rent). The intention of the valuation is to determine the sum payable by the lessee to the freeholder for the acquisition of the lease extension.
Leasehold properties in Chesterton with more than one hundred years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in buying the freehold unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Chesterton can be a difficult process. We recommend you get professional help from a conveyancer and surveyor well versed in the legislation and lease extension process.
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 dealing with Chesterton lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Following unsuccessful negotiations with the landlord of her ground floor flat in Chesterton, Mia initiated the lease extension process as the 80 year threshold was swiftly approaching. The transaction completed in January 2006. The freeholder’s charges were restricted to approximately 550 GBP.
Mr and Mrs. Y Miller purchased a one bedroom flat in Chesterton in May 2007. The dilemma was if we could shed any light on how much (approximately) price would likely be to prolong the lease by ninety years. Similar residencies in Chesterton with a long lease were valued around £285,000. The mid-range ground rent payable was £45 billed per annum. The lease ran out on 9 November 2096. Taking into account 71 years unexpired we estimated the premium to the freeholder to extend the lease to be within £12,400 and £14,200 not including professional charges.
Last Winter we were phoned by Mr and Mrs. H Turner , who moved into a purpose-built flat in Chesterton in July 2011. We are asked if we could shed any light on how much (approximately) premium could be for a ninety year lease extension. Comparable flats in Chesterton with an extended lease were worth £225,800. The average ground rent payable was £60 collected quarterly. The lease lapsed on 15 March 2085. Having 60 years left we calculated the compensation to the landlord to extend the lease to be within £23,800 and £27,400 plus expenses.