Unfortunately that a Chilwell residential lease is a deteriorating asset. The lease value reduces in proportion to its lease length. The extent of this is taken for granted in the first few years due to the depreciation being disguised by increases in the Chilwell property market.Once your lease gets to 85ish years, you need to start considering a lease extension. If the number of years remaining drops below 80 years, you will end up paying half of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add the property Most leasehold owners in Chilwell will be able to extend under the legislation; however a conveyancer should be able to clarify whether you are eligibility. In some cases you may not be entitled. There are also strict deadlines and procedures to be adhered to once the process has commenced and you will need to be guided by your lawyer for the duration of the process.
Leasehold premises in Chilwell with over 100 years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Coventry Building Society | 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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. |
Irrespective of whether you are a tenant or a landlord in Chilwell,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Chilwell valuers.
During the course of the last few months Dexter, came dangerously close to the 80-year threshold with the lease on his ground floor apartment in Chilwell. Having bought his home 18 years ago, the lease term was of no importance. Fortunately, he became aware that he would soon be paying an escalated premium for Extending the lease. Dexter arranged for a lease extension at the eleventh hour last September. Dexter and the freeholder via the management company subsequently settled on sum of £6,000 . If the lease had fallen to less than eighty years, the sum would have gone up by a minimum £850.
Last July we were approach by Dr O Mercier , who completed a one bedroom apartment in Chilwell in June 1997. The dilemma was if we could approximate the price could be for a ninety year lease extension. Similar residencies in Chilwell with a long lease were valued around £280,000. The mid-range ground rent payable was £55 invoiced per annum. The lease came to a finish on 23 July 2103. Considering the 78 years unexpired we estimated the premium to the landlord to extend the lease to be within £13,300 and £15,400 plus fees.
In 2010 we were phoned by Dr T Vincent who, having owned a purpose-built flat in Chilwell in March 2004. We are asked if we could approximate the compensation to the landlord would likely be for a ninety year extension to my lease. Comparable premises in Chilwell with 100 year plus lease were worth £186,000. The average amount of ground rent was £65 billed monthly. The lease expired in 2083. Considering the 58 years outstanding we estimated the premium to the landlord for the lease extension to be within £24,700 and £28,600 exclusive of expenses.