Chigwell leases on domestic deteriorating in value. if your lease has about ninety years remaining, you should start considering the need for a lease extension. If lease term is under 80 years, you will then have to pay 50% of the property's 'marriage value' in addition to the standard cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Flat owners in Chigwell will usually be legally entitled to a lease extension; however a solicitor will confirm if you qualify. In certain cases you may not be entitled. There are also strict timetables and procedures to follow once the process has started so it’s sensible to be guided by a conveyancer during the process.
Leasehold properties in Chigwell with over one hundred years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Chigwell can be a difficult process. We recommend you procure guidance from a conveyancing solicitor and valuer with experience in lease extensions.
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 in-depth market knowledge dealing with Chigwell lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last Christmas David, started to get close to the 80-year threshold with the lease on his two bedroom flat in Chigwell. Having purchased his flat two decades ago, the unexpired term was of little interest. by good luck, it dawned on him that he would imminently be paying an escalated premium for Extending the lease. David was able to extend his lease just under the wire in May. David and the landlord who owned the flat above ultimately agreed on sum of £6,000 . If the lease had gone below 80 years, the figure would have increased by a minimum £850.
In 2012 we were called by Mr and Mrs. T Bernard who, having moved into a basement apartment in Chigwell in February 2001. We are asked if we could shed any light on how much (approximately) compensation to the landlord could be to extend the lease by an additional years. Identical homes in Chigwell with 100 year plus lease were valued around £260,000. The average amount of ground rent was £50 invoiced monthly. The lease finished on 22 September 2096. Having 71 years outstanding we calculated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 not including costs.
An example of a Freehold Enfranchisement decision for a Chigwell residence 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 unexpired lease term was 69.26 years.