Chew Magna leases on domestic deteriorating in value. if your lease has in the region of ninety years unexpired, you should start thinking about a lease extension. It is important to recognise that it is that it is financially advisable for the lease extension to be in place before the term of the existing lease drops lower than eighty years - otherwise a higher premium will be due. Flat owners in Chew Magna will mostly be legally entitled to a lease extension; however a solicitor should be able confirm if you qualify. In some situations you may not qualify. There are prescribed deadlines and steps to follow once the process has commenced so it’s best to be guided by a conveyancer during the process.
Leasehold properties in Chew Magna with more than 100 years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| 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. |
| Coventry Building Society | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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. |
The lawyers that we work with undertake Chew Magna 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 conveyancer we work with provide it.
18 months ago Owen, started to get close to the eighty-year mark with the lease on his purpose- built flat in Chew Magna. In buying his flat two decades ago, the length of the lease was of no concern. Luckily, he recognised he needed to take steps soon on a lease extension. Owen extended the lease just under the wire in July. Owen and the landlord who owned the flat above ultimately agreed on the final figure of £5,000 . If the lease had descended to less than eighty years, the sum would have become more costly by a minimum £1,050.
Last Autumn we were phoned by Dr Max Thomas , who was assigned a lease of a basement flat in Chew Magna in October 2001. The question was if we could shed any light on how much (roughly) premium could be for a 90 year extension to my lease. Similar flats in Chew Magna with an extended lease were valued around £270,000. The mid-range ground rent payable was £55 collected monthly. The lease ran out in 2100. Considering the 74 years remaining we approximated the compensation to the landlord for the lease extension to be within £9,500 and £11,000 exclusive of costs.
Last Spring we were approach by Dr Caleb Davies , who acquired a garden apartment in Chew Magna in March 2007. The question was if we could shed any light on how much (approximately) compensation to the landlord would be for a ninety year lease extension. Similar premises in Chew Magna with an extended lease were in the region of £166,400. The mid-range amount of ground rent was £60 billed per annum. The lease ended in 2080. Given that there were 54 years as a residual term we estimated the compensation to the freeholder for the lease extension to be between £32,300 and £37,400 exclusive of legals.