Chew Magna leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease gets more expensive. It is the case that most Chew Magna tenants have the right to extend their lease by an additional 90 years under the 1993 Leasehold Reform Act. If you are a leasehold owner in Chew Magna you should check if your lease has between seventy and 90 years left. There are good reasons why a Chew Magna flat owner with a lease having around eighty years unexpired should take action to make sure that a lease extension is effected without delay
It is generally considered that a property with over one hundred years unexpired lease term is worth approximately the same as a freehold. Where an further 90 years added to any lease with more than 45 years left, the property will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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; |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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 better control over the value of your Chew Magna leasehold, as your property will be more valuable and marketable in respect of lease length should you decide to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
In recent months Hunter, started to get near to the eighty-year mark with the lease on his studio apartment in Chew Magna. Having bought his property two decades ago, the unexpired term was of minimal interest. Luckily, he noticed he needed to take steps soon on a lease extension. Hunter arranged for a lease extension at the eleventh hour in September. Hunter and the landlord who owned the flat above ultimately agreed on a premium of £6,000 . If he had missed the deadline, the price would have gone up by at least £1,025.
Ms Rosie Richardson was assigned a lease of a one bedroom flat in Chew Magna in June 2005. The dilemma was if we could approximate the compensation to the landlord would be for a ninety year lease extension. Comparative residencies in Chew Magna with a long lease were worth £215,600. The average amount of ground rent was £45 collected quarterly. The lease ended on 26 July 2088. Taking into account 62 years outstanding we estimated the compensation to the freeholder to extend the lease to be between £18,100 and £20,800 plus fees.
Last Winter we were contacted by Dr M Anderson , who owned a garden apartment in Chew Magna in February 2009. We are asked if we could estimate the price would likely be for a ninety year lease extension. Identical homes in Chew Magna with a long lease were worth £265,000. The average amount of ground rent was £50 invoiced annually. The lease ran out in 2099. Considering the 73 years left we calculated the premium to the landlord to extend the lease to be within £9,500 and £11,000 plus expenses.