Chances are that if you own a flat in Chilwell you actually own a long leasehold interest over your property
It is conventional wisdom that a property with more than 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional 90 years added to any lease with more than 45 years unexpired, the property will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
Regardless of whether you are a tenant or a landlord in Chilwell,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Chilwell valuers.
Last Autumn Tommy, started to get near to the 80-year mark with the lease on his purpose- built apartment in Chilwell. In buying his property two decades ago, the lease term was of no importance. Fortunately, he noticed he would imminently be paying way over the odds for Extending the lease. Tommy extended the lease at the eleventh hour in January. Tommy and the landlord who owned the flat above eventually settled on the final figure of £5,500 . If he not met the deadline, the amount would have increased by at least £1,000.
Mr and Mrs. Y Cox was assigned a lease of a one bedroom apartment in Chilwell in March 2004. The dilemma was if we could approximate the compensation to the landlord would be to extend the lease by an additional years. Comparative properties in Chilwell with a long lease were valued around £166,400. The mid-range ground rent payable was £60 collected every twelve months. The lease ended in 2080. Given that there were 54 years unexpired we approximated the premium to the landlord to extend the lease to be within £32,300 and £37,400 exclusive of expenses.
In 2009 we were phoned by Mr and Mrs. D Campbell who, having was assigned a lease of a one bedroom flat in Chilwell in April 2008. We are asked if we could estimate the compensation to the landlord would likely be to prolong the lease by 90 years. Identical properties in Chilwell with an extended lease were worth £227,800. The mid-range ground rent payable was £45 invoiced per annum. The lease elapsed in 2091. Considering the 65 years outstanding we calculated the compensation to the landlord for the lease extension to be between £13,300 and £15,400 plus costs.