It’s a harsh truth that a Chilwell residential lease is a wasting asset. As the lease term reduces so does the value of the property. The extent of this is not fully appreciated in the early years due to the deflation being disguised by increases in the Chilwell property market.Where your lease has approximately 90 years left, you need to start thinking about a lease extension. If the number of years remaining dips below 80 years, you will then be required to pay 50% of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. The marriage fee is the amount of extra value that a lease extension will add the property Most flat owners in Chilwell will be able to extend under the legislation; however a lawyer will be able to clarify whether you qualify for an extension. In some cases you may not be entitled. There are also strict timetables and procedures to follow once the process is instigated and you will need to be guided by your lawyer from beginning to end of the process.
It is conventional wisdom that a property with in excess of 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional 90 years added to any lease with more than 35 years left, the premises will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barclays plc | |
| Leeds Building Society | |
| The Mortgage Works | |
| Royal Bank of Scotland | |
| Yorkshire Building Society |
The conveyancing solicitors that we work with procure Chilwell lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
George owned a studio apartment in Chilwell on the market with a lease of fraction over 59 years left. George on an informal basis contacted his landlord being a well known London-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to grant an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £50 yearly. No ground rent would be payable on a lease extension were George to invoke his statutory right. George obtained expert legal guidance and secured satisfactory resolution without resorting to tribunal and ending up with a market value flat.
Mr William Williams completed a purpose-built apartment in Chilwell in March 1997. The dilemma was if we could estimate the price would likely be for a 90 year lease extension. Identical homes in Chilwell with 100 year plus lease were valued around £245,000. The mid-range ground rent payable was £50 billed every twelve months. The lease finished in 2094. Having 68 years unexpired we estimated the compensation to the freeholder to extend the lease to be between £9,500 and £11,000 not including costs.
Last Christmas we were phoned by Dr A Thompson , who purchased a ground floor flat in Chilwell in May 1998. The dilemma was if we could shed any light on how much (approximately) premium would likely be to extend the lease by an additional years. Comparable premises in Chilwell with an extended lease were in the region of £285,000. The average ground rent payable was £55 invoiced annually. The lease lapsed in 2105. Taking into account 79 years as a residual term we approximated the premium to the freeholder for the lease extension to be within £13,300 and £15,400 plus legals.