Chinnor leases on domestic properties are gradually losing value. Where your lease has approximately ninety years unexpired, you should start considering the need for a lease extension. An important point to note is that it is financially advisable for the lease extension to be in place before the term of the existing lease falls under eighty years - otherwise a higher amount will be due. Flat owners in Chinnor will usually be legally entitled to a lease extension; however a solicitor will check if you qualify. In some situations you may not be entitled. There are also strict deadlines and steps to comply with once the process is initiated so it’s prudent to be guided by a conveyancing solicitor during the process.
Leasehold properties in Chinnor with over 100 years remaining 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 premises. In such circumstances there is often little upside in buying the freehold unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| 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. |
Retaining our service gives you enhanced control over the value of your Chinnor leasehold, as your property will be more valuable and marketable in relation to the lease length should you decide to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
In the wake of eight months of protracted discussions with the landlord of her first floor apartment in Chinnor, Katie initiated the lease extension process as the 80 year threshold was fast coming. The legal work was finalised in January 2013. The landlord’s charges were kept to an absolute minimum.
Last Winter we were approach by Dr Riley Gómez , who was assigned a lease of a purpose-built flat in Chinnor in July 2009. We are asked if we could estimate the price would be to prolong the lease by ninety years. Identical properties in Chinnor with a long lease were worth £300,000. The average ground rent payable was £50 billed every twelve months. The lease lapsed on 14 March 2101. Taking into account 76 years outstanding we calculated the compensation to the landlord for the lease extension to be between £8,600 and £9,800 exclusive of expenses.
Last Spring we were called by Dr T Parker , who completed a basement apartment in Chinnor in July 2008. We are asked if we could approximate the premium would be to extend the lease by an additional years. Comparable residencies in Chinnor with 100 year plus lease were valued around £257,800. The mid-range ground rent payable was £65 invoiced quarterly. The lease ended on 24 May 2090. Taking into account 65 years as a residual term we calculated the premium to the freeholder to extend the lease to be between £18,100 and £20,800 plus legals.