There is no doubt about it a leasehold property in Chinnor is a wasting asset as a result of the shortening lease. Where the lease has, more than one hundred years to run then this decrease may be negligible that being said there will become a stage when a lease has under than eighty years unexpired as part of the premium you will incur is what is termed as a marriage value. This could increase sharply the cost. It is the main rational as to why you should consider extending without delay. Many flat owners in Chinnor will qualify for this right; however a conveyancing solicitor can advise if you qualify to extend your lease. In limited situations you may not qualify, the most frequent reason being that you have owned the property for less than two years.
It is conventional wisdom that a property with more than one hundred years remaining is worth roughly the same as a freehold. Where an further ninety years added to any lease with more than 30 years remaining, the residence will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| Yorkshire 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. |
Regardless of whether you are a tenant or a freeholder in Chinnor,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Chinnor valuers.
Off the back of protracted correspondence with the landlord of her leasehold flat in Chinnor, Leah initiated the lease extension process just as her lease was coming close to the crucial eighty-year threshold. The legal work was finalised in May 2005. The freeholder’s fees were restricted to slightly above 600 GBP.
Mr E Ricardo moved into a studio apartment in Chinnor in February 2009. We are asked if we could approximate the price would likely be to prolong the lease by an additional years. Similar properties in Chinnor with 100 year plus lease were valued around £213,600. The average ground rent payable was £60 billed per annum. The lease elapsed in 2082. Considering the 57 years remaining we calculated the compensation to the landlord for the lease extension to be between £30,400 and £35,200 not including legals.
Mr and Mrs. M Moreau completed a ground floor flat in Chinnor in January 2006. We are asked if we could estimate the price could be for a ninety year lease extension. Similar premises in Chinnor with 100 year plus lease were valued around £200,000. The mid-range ground rent payable was £50 invoiced yearly. The lease lapsed on 18 August 2102. Taking into account 77 years unexpired we estimated the compensation to the freeholder to extend the lease to be within £8,600 and £9,800 plus professional charges.