It’s a harsh certainty that a Chew Magna residential lease is a deteriorating asset. As the lease term reduces so does the value of the property. The extent of this is not fully appreciated in the first few years due to the depreciation being disguised by increases in the Chew Magna property market.Where your lease has approximately ninety years left, you need to start considering a lease extension. If the number of years remaining slips under eighty years, you will end up paying half of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add the property The majority of flat owners in Chew Magna will be able to extend under the legislation; however a conveyancing solicitor should be able to clarify whether you qualify for an extension. In some situations you may not qualify. There are also strict timetables and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancer from beginning to end of the formalities.
It is conventional wisdom that a property with in excess of 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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. |
Using our service gives you increased control over the value of your Chew Magna leasehold, as your property will be more valuable and marketable in terms of lease length should you decide to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Leo owned a high value apartment in Chew Magna being sold with a lease of a little over sixty years left. Leo informally approached his freeholder being a well known local-based freehold company for a lease extension. The freeholder was prepared to give an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £125 per annum. No ground rent would be due on a lease extension were Leo to exercise his statutory right. Leo procured expert legal guidance and was able to make a more informed judgement and deal with the matter and ending up with a market value flat.
Last Christmas we were contacted by Ms J Cox , who purchased a basement flat in Chew Magna in June 2005. We are asked if we could approximate the price would be to extend the lease by an additional years. Comparative residencies in Chew Magna with a long lease were worth £173,800. The mid-range amount of ground rent was £65 invoiced per annum. The lease elapsed in 2081. Taking into account 55 years as a residual term we approximated the compensation to the freeholder to extend the lease to be within £31,400 and £36,200 exclusive of fees.
In 2014 we were approached by Mr and Mrs. D François who, having acquired a studio flat in Chew Magna in August 2005. We are asked if we could estimate the compensation to the landlord could be to extend the lease by an additional years. Similar residencies in Chew Magna with a long lease were worth £235,200. The mid-range ground rent payable was £45 collected monthly. The lease terminated on 23 March 2092. Taking into account 66 years outstanding we estimated the compensation to the landlord for the lease extension to be within £12,400 and £14,200 plus costs.