Chiseldon leases on residential deteriorating in value. if your lease has in the region of 90 years left, you should start considering the need for a lease extension. Eighty years is a significant number: when the unexpired term of a lease falls below this level then you begin paying an additional element called marriage value. Leasehold owners in Chiseldon will mostly be legally entitled to a lease extension; however a solicitor should be able confirm your eligibility. In some cases you may not be entitled. There are prescribed timetables and procedures to follow once the process has commenced so it’s best to be guided by a lawyer during the process.
It is generally considered that a property with in excess of 100 years unexpired lease term is worth roughly the same as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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. |
The lawyers that we work with undertake Chiseldon 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 conveyancing solicitor we work with provide it.
Last Summer Joseph, started to get close to the 80-year mark with the lease on his leasehold flat in Chiseldon. In buying his flat twenty years previously, the lease term was of minimal interest. by good luck, he became aware that he would soon be paying an escalated premium for a lease extension. Joseph extended the lease just under the wire last April. Joseph and the landlord who owned the flat above subsequently settled on an amount of £6,000 . If the lease had slipped below 80 years, the figure would have increased by at least £1,025.
In 2011 we were phoned by Mrs Kate Roux who, having acquired a purpose-built flat in Chiseldon in July 1997. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord would likely be to extend the lease by a further 90 years. Identical residencies in Chiseldon with 100 year plus lease were in the region of £260,000. The average amount of ground rent was £50 collected quarterly. The lease terminated on 22 May 2097. Taking into account 72 years unexpired we estimated the compensation to the freeholder to extend the lease to be between £9,500 and £11,000 not including professional charges.
In 2011 we were called by Mr and Mrs. E Clarke who, having purchased a ground floor apartment in Chiseldon in November 2000. We are asked if we could approximate the premium would be to extend the lease by ninety years. Comparative flats in Chiseldon with a long lease were in the region of £256,600. The mid-range ground rent payable was £60 collected annually. The lease elapsed in 2077. Having 52 years unexpired we approximated the compensation to the freeholder for the lease extension to be within £39,000 and £45,000 plus expenses.