The re-sale value of a leasehold property in Chilwell depends on how many years the lease has remaining. If it is close to or fewer than eighty years you should envisage problems on re-sale, so it is advisable to arrange for a lease extension prior to buying. It is preferable to start the lease extension process when the lease still has 82 years unexpired so that formalities can be addressed in advance of the eighty year mark. Statute entitles Chilwell qualifying lessees to obtain a lease extension of ninety years on top of the remaining lease term at a peppercorn rent (that is, rent free). The purpose of the valuation is to determine the premium payable by the lessee to the freeholder for the purchase of the lease extension.
It is generally considered that a residential leasehold with over 100 years unexpired lease term is worth roughly the same as a freehold. Where an further ninety years added to all but the shortest lease, the premises will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Barnsley Building Society | |
| Godiva Mortgages | |
| Santander | |
| Yorkshire Building Society |
Retaining our service will provide you enhanced control over the value of your Chilwell leasehold, as your property will be more valuable and saleable in terms of lease length should you want to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
After protracted discussions with the freeholder of her two bedroom flat in Chilwell, Bethany started the lease extension process just as her lease was coming close to the crucial 80-year threshold. The legal work was finalised in September 2005. The freeholder’s fees were kept to an absolute minimum.
In 2009 we were phoned by Mrs M Lambert who, having acquired a first floor flat in Chilwell in October 1996. We are asked if we could estimate the premium would be to prolong the lease by a further 90 years. Identical premises in Chilwell with a long lease were worth £285,000. The average ground rent payable was £55 billed quarterly. The lease expired in 2106. Considering the 80 years outstanding we approximated the compensation to the freeholder for the lease extension to be between £12,400 and £14,200 exclusive of professional charges.
Last Spring we were approach by Mr V Murphy , who took over the lease of a one bedroom apartment in Chilwell in June 1996. The dilemma was if we could estimate the price would likely be for a 90 year lease extension. Identical premises in Chilwell with 100 year plus lease were in the region of £200,800. The average amount of ground rent was £65 invoiced every twelve months. The lease expired in 2086. Having 60 years left we approximated the premium to the freeholder for the lease extension to be within £20,900 and £24,200 not including expenses.