Chances are that where you own a flat in Chigwell you actually own a long leasehold interest over your property
It is conventional wisdom that a property with in excess of 100 years remaining is worth approximately the same as a freehold. Where an additional 90 years added to any lease with more than 35 years unexpired, the residence will be equivalent in value to a freehold for decades to come.
| 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Chigwell can be a difficult process. We recommend you obtain guidance from a lawyer and surveyor well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience procuring Chigwell lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Zachary owned a conversion flat in Chigwell on the market with a lease of a few days over 72 years remaining. Zachary on an informal basis approached his landlord a well known London-based freehold company and enquired on a premium to extend the lease. The landlord was keen to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £100 yearly. No ground rent would be due on a lease extension were Zachary to invoke his statutory right. Zachary procured expert advice and secured an acceptable resolution informally and sell the flat.
Last year we were called by Ms Jennifer Wood , who owned a ground floor flat in Chigwell in May 2002. We are asked if we could estimate the premium would be for a 90 year extension to my lease. Comparative properties in Chigwell with an extended lease were in the region of £250,000. The mid-range ground rent payable was £50 collected per annum. The lease ran out in 2095. Given that there were 69 years unexpired we calculated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 plus expenses.
An example of a Freehold Enfranchisement case for a Chigwell premises 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 affected 2 flats. The remaining number of years on the lease was 69.26 years.