Chew Magna leases on domestic properties are gradually losing value. Where your lease has in the region of 90 years left, you should start thinking about a lease extension. If lease term is less than eighty years, you will then have to pay 50% 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. Leasehold owners in Chew Magna will usually be legally entitled to a lease extension; however It would be wise to check with a conveyancing solicitor to confirm your eligibility. In certain situations you may not be entitled. There are prescribed deadlines and procedures to comply with once the process is triggered so it’s prudent to be guided by a conveyancing solicitor during the process.
Leasehold residencies in Chew Magna with over one hundred years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little upside in buying the freehold unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| 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; |
| Godiva Mortgages | 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Using our service will provide you increased control over the value of your Chew Magna leasehold, as your property will be more valuable and saleable in terms of lease length should you wish to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Last Spring Elijah, came seriously near to the 80-year threshold with the lease on his basement apartment in Chew Magna. In buying his property 19 years previously, the lease term was of no significance. Luckily, he noticed he needed to take steps soon on a lease extension. Elijah extended the lease just ahead of time in July. Elijah and the landlord eventually agreed on an amount of £6,000 . If the lease had slid below 80 years, the premium would have become more exhorbitant by at least £875.
In 2013 we were approached by Mrs O Campbell who, having acquired a ground floor flat in Chew Magna in November 2007. The dilemma was if we could shed any light on how much (approximately) price would be to extend the lease by 90 years. Similar flats in Chew Magna with a long lease were in the region of £242,600. The average amount of ground rent was £45 collected quarterly. The lease terminated on 18 March 2092. Taking into account 67 years remaining we approximated the premium to the landlord to extend the lease to be within £11,400 and £13,200 exclusive of expenses.
Last Autumn we were called by Mr and Mrs. H White , who acquired a purpose-built flat in Chew Magna in October 2003. We are asked if we could estimate the premium could be to prolong the lease by a further 90 years. Comparative flats in Chew Magna with 100 year plus lease were valued about £280,000. The mid-range amount of ground rent was £55 billed every twelve months. The lease finished on 9 August 2103. Having 78 years outstanding we approximated the compensation to the landlord for the lease extension to be between £13,300 and £15,400 plus fees.