Chigwell leases on domestic properties are gradually losing value. if your lease has about 90 years left, you should start thinking about a lease extension. Eighty years is a significant number: when the remaining term of a lease dips below this level then you begin paying an additional element called marriage value. Leasehold owners in Chigwell will usually qualify for a lease extension; however It would be wise to check with a conveyancer to confirm your eligibility. In certain circumstances you may not qualify. There are prescribed deadlines and procedures to follow once the process is triggered so it’s wise to be guided by a conveyancer during the process.
Leasehold premises in Chigwell with in excess of 100 years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Regardless of whether you are a tenant or a freeholder in Chigwell,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Chigwell valuers.
Last year Luke, started to get near to the 80-year threshold with the lease on his garden flat in Chigwell. In buying his home two decades ago, the length of the lease was of no concern. Thankfully, he noticed he needed to take steps soon on Extending the lease. Luke extended the lease at the eleventh hour in September. Luke and the landlord who owned the flat above subsequently agreed on the final figure of £5,000 . If he not met the deadline, the figure would have increased by at least £1,050.
Ms Robyn Jones acquired a first floor apartment in Chigwell in March 1995. We are asked if we could shed any light on how much (roughly) premium would be for a 90 year extension to my lease. Identical flats in Chigwell with 100 year plus lease were valued around £235,200. The mid-range ground rent payable was £45 billed quarterly. The lease concluded in 2092. Given that there were 66 years outstanding we approximated the compensation to the landlord for the lease extension to be within £12,400 and £14,200 not including costs.
An example of a Freehold Enfranchisement decision for a Chigwell flat is 201 & 201a St. Barnabas Road in October 2013. The Tribunal decided that the price to be paid by the Applicants for the freehold interest is £20,071. This case was in relation to 2 flats. The remaining number of years on the lease was 69.26 years.