It’s an underpublicised certainty that a Chinnor residential lease is a wasting asset. The lease value drops in proportion to its lease length. The extent of this is taken for granted in the first few years due to the reduction being disguised by increases in the Chinnor property prices.Where your lease has approximately ninety years left, you need to start thinking about a lease extension. If lease term falls below 80 years, you will end up paying 50% of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add the property The majority of flat owners in Chinnor will be able to extend under the legislation; however a lawyer will be able to clarify if you are eligibility. In some situations you may not qualify. There are also strict timetables and procedures to follow once the process has commenced and you will need to be guided by your conveyancing solicitor for the duration of the formalities.
It is conventional wisdom that a property with in excess of 100 years unexpired lease term is worth roughly the same as a freehold. Where an additional 90 years added to any lease with more than 35 years left, the residence will be equivalent in value to a freehold for many years ahead.
| 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
The conveyancing solicitors that we work with undertake Chinnor 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 conveyancer we work with provide it.
In recent months Blake, started to get near to the eighty-year mark with the lease on his first floor flat in Chinnor. In buying his home 18 years previously, the lease term was of minimal importance. Luckily, he noticed he would soon be paying an inflated amount for a lease extension. Blake extended the lease just under the wire in June. Blake and the freeholder via the managing agents eventually agreed on sum of £5,500 . If the lease had slipped lower than 80 years, the premium would have increased by a minimum £975.
Ms U Rose completed a studio flat in Chinnor in September 1998. The question was if we could estimate the compensation to the landlord would be for a ninety year extension to my lease. Comparative premises in Chinnor with 100 year plus lease were valued about £267,600. The mid-range amount of ground rent was £65 invoiced per annum. The lease lapsed on 1 November 2093. Having 67 years outstanding we calculated the premium to the freeholder for the lease extension to be between £14,300 and £16,400 not including legals.
Ms Abigail Dupont took over the lease of a studio flat in Chinnor in August 2011. We are asked if we could estimate the price could be to prolong the lease by a further 90 years. Comparable homes in Chinnor with a long lease were in the region of £206,200. The average ground rent payable was £60 invoiced annually. The lease came to a finish on 3 July 2082. Considering the 56 years outstanding we estimated the compensation to the landlord to extend the lease to be between £31,400 and £36,200 plus fees.