The only way is down when it comes to Chingford lease terms. Chingford properties that have a lease term less than than 80 years will de-escalate in value even faster, and the cost to extend your lease will go up.
It is generally considered that a property with in excess of 100 years remaining is worth roughly the same as a freehold. Where an additional ninety years added to any lease with more than 30 years left, the residence will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
The lawyers that we work with procure Chingford 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.
Last October Kyle, came precariously close to the 80-year mark with the lease on his studio flat in Chingford. Having purchased his flat two decades ago, the lease term was of little significance. As luck would have it, he realised he would imminently be paying way over the odds for Extending the lease. Kyle was able to extend his lease just under the wire last July. Kyle and the landlord in the end agreed on a premium of £5,500 . If the lease had descended below 80 years, the price would have increased by a minimum £975.
Mr U Roberts bought a studio flat in Chingford in August 1995. We are asked if we could shed any light on how much (approximately) price could be to extend the lease by an additional years. Comparative homes in Chingford with 100 year plus lease were in the region of £264,000. The mid-range amount of ground rent was £60 invoiced annually. The lease ran out in 2079. Considering the 53 years remaining we calculated the compensation to the freeholder for the lease extension to be between £37,100 and £42,800 exclusive of professional charges.
An example of a Freehold Enfranchisement case for a Chingford premises is 201 & 201a St. Barnabas Road in October 2013. The Tribunal decided that the price to be paid by the Applicants for the freehold interest is £20,071. This case affected 2 flats. The remaining number of years on the lease was 69.26 years.