The nearer a residential lease in Chilwell gets to zero years unexpired, the more it reduces the value of the property. Where the residual term has, beyond 99 years to run then this decrease may be fractional that being said there will become a stage when a lease has less than eighty years unexpired as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the main logic behind why you should extend the lease sooner rather than later. The majority of flat owners in Chilwell will meet the qualifying criteria; that being said a lawyer will be able to advise whether you are eligible for a lease extension. In limited situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
Leasehold properties in Chilwell with over one hundred years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and service charges merit 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. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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 Chilwell can be a difficult process. We recommend you get professional help from a lawyer and valuer 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 dealing with Chilwell lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Andrew owned a conversion flat in Chilwell on the market with a lease of just over sixty years outstanding. Andrew informally approached his freeholder a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to agree an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £200 per annum. No ground rent would be due on a lease extension were Andrew to invoke his statutory right. Andrew obtained expert advice and secured satisfactory resolution without resorting to tribunal and sell the flat.
Ms Chloe Bernard moved into a basement flat in Chilwell in July 2001. We are asked if we could approximate the price would likely be for a ninety year extension to my lease. Comparable homes in Chilwell with an extended lease were in the region of £203,200. The mid-range amount of ground rent was £65 billed per annum. The lease elapsed in 2087. Having 61 years unexpired we calculated the compensation to the freeholder for the lease extension to be between £19,000 and £22,000 plus expenses.
Last Spring we were e-mailed by Mr and Mrs. R Ward , who took over the lease of a one bedroom flat in Chilwell in February 2012. The dilemma was if we could approximate the price would be for a 90 year lease extension. Comparative homes in Chilwell with a long lease were in the region of £260,000. The mid-range amount of ground rent was £50 billed annually. The lease ended on 24 March 2098. Given that there were 72 years remaining we approximated the compensation to the freeholder to extend the lease to be between £9,500 and £11,000 plus expenses.