When it comes to domestic leasehold premises in Chinnor, you are actually purchasing an entitlement to live in a property for a prescribed time frame. Modern flat leases typically tend to be for 99 years or 125. Even though this may appear like a long period of time, you may consider a lease extension sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease increases markedly particularly once there are fewer than eighty years left. Leasehold owners in Chinnor with a lease approaching 81 years unexpired should seriously consider extending it as soon as possible. When a lease has less than 80 years outstanding, under the current legislation the freeholder can calculate and levy a larger amount, assessed on a technical computation, known as “marriage value” which is due.
Leasehold residencies in Chinnor with more than one hundred years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start 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. |
Lease extensions in Chinnor can be a difficult process. We recommend you secure guidance from a lawyer and surveyor with experience in this area.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge procuring Chinnor lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
After protracted negotiations with the landlord of her two bedroom flat in Chinnor, Amy initiated the lease extension process just as the lease was approaching the all-important eighty-year threshold. The legal work was concluded in September 2009. The freeholder’s costs were kept to an absolute minimum.
Last Summer we were phoned by Mr and Mrs. Y Petit , who purchased a purpose-built apartment in Chinnor in May 2006. We are asked if we could estimate the compensation to the landlord could be for a ninety year lease extension. Comparative residencies in Chinnor with 100 year plus lease were worth £171,800. The average amount of ground rent was £55 billed every twelve months. The lease terminated on 16 July 2076. Given that there were 50 years left we approximated the premium to the freeholder for the lease extension to be within £33,300 and £38,400 not including legals.
Last Spring we were called by Mr and Mrs. L Lee , who completed a ground floor flat in Chinnor in March 2001. We are asked if we could estimate the compensation to the landlord would likely be to prolong the lease by a further 90 years. Comparative homes in Chinnor with an extended lease were valued around £280,000. The average ground rent payable was £45 invoiced per annum. The lease came to a finish in 2096. Considering the 70 years outstanding we estimated the premium to the landlord to extend the lease to be within £12,400 and £14,200 exclusive of costs.