Unfortunately that a Chilwell residential lease is a wasting asset. The lease value drops in proportion to its lease length. The extent of this is taken for granted in the early years due to the loss of value being disguised by increases in the Chilwell property prices.Once your lease nears 85ish years, you should start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease slips lower than 80 years - otherwise a higher amount will be payable. The majority of flat owners in Chilwell will be able to extend under the legislation; however a conveyancing solicitor will be able to confirm whether you qualify for an extension. In some situations you may not qualify. There are also strict timeframes and procedures to follow once the process is instigated and you will need to be guided by your conveyancing solicitor for the duration of the process.
Leasehold premises in Chilwell with over 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 home. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| 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; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| 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 gives you increased control over the value of your Chilwell leasehold, as your property will be more valuable and saleable in relation to the lease length should you want to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Last year Jude, started to get near to the eighty-year threshold with the lease on his garden apartment in Chilwell. Having bought his property two decades ago, the lease term was of no importance. by good luck, he realised he needed to take action soon on a lease extension. Jude extended the lease just under the wire in May. Jude and the freeholder eventually agreed on an amount of £5,000 . If he not met the deadline, the figure would have gone up by at least £875.
In 2014 we were approached by Mr and Mrs. W Roberts who, having took over the lease of a basement flat in Chilwell in October 2002. The dilemma was if we could approximate the price could be to prolong the lease by a further 90 years. Identical premises in Chilwell with a long lease were worth £176,200. The mid-range amount of ground rent was £65 collected per annum. The lease concluded in 2082. Having 56 years left we approximated the premium to the landlord for the lease extension to be between £29,500 and £34,000 exclusive of fees.
Last Spring we were e-mailed by Ms Isabel Murphy , who owned a purpose-built flat in Chilwell in November 2000. We are asked if we could approximate the compensation to the landlord would likely be to prolong the lease by ninety years. Identical premises in Chilwell with an extended lease were valued around £237,600. The mid-range ground rent payable was £45 invoiced yearly. The lease ended on 1 June 2093. Given that there were 67 years remaining we estimated the premium to the freeholder to extend the lease to be within £11,400 and £13,200 exclusive of legals.