As the length of the unexpired term of a Chobham domestic lease lessens so does its value and therefore the value of your property. If the residual term has, in excess of one hundred years remaining then this decrease may be fractional however there will become a stage when a lease has fewer than 80 years left as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the primary reason why you should consider extending sooner than later. The majority of flat owners in Chobham will qualify for this right; nevertheless a lawyer should be able to advise if you qualify to extend your lease. In limited situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
Leasehold properties in Chobham with more than one hundred years unexpired on the lease are often referred to as ‘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 purchasing the reversionary interest unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Barclays plc | |
| Birmingham Midshires | |
| Chelsea Building Society | |
| Yorkshire Building Society |
Using our service gives you better control over the value of your Chobham leasehold, as your property will be more valuable and marketable in relation to the lease length should you want to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Kyle owned a 2 bedroom flat in Chobham being sold with a lease of just over 72 years outstanding. Kyle on an informal basis contacted his landlord being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent initially set at £150 per annum and doubled every twenty five years thereafter. No ground rent would be payable on a lease extension were Kyle to invoke his statutory right. Kyle obtained expert legal guidance and was able to make a more informed decision and handle with the matter and sell the flat.
Ms L Martínez bought a purpose-built flat in Chobham in March 2006. The question was if we could approximate the compensation to the landlord would be for a 90 year extension to my lease. Similar residencies in Chobham with a long lease were valued about £275,000. The average amount of ground rent was £55 invoiced quarterly. The lease terminated in 2102. Taking into account 76 years left we approximated the compensation to the landlord for the lease extension to be within £9,500 and £11,000 plus costs.
Last year we were phoned by Dr B Bernard , who was assigned a lease of a purpose-built apartment in Chobham in March 1996. We are asked if we could estimate the compensation to the landlord would likely be to prolong the lease by an additional years. Identical homes in Chobham with 100 year plus lease were worth £176,200. The mid-range ground rent payable was £65 collected every twelve months. The lease ran out in 2082. Having 56 years remaining we approximated the premium to the landlord for the lease extension to be between £29,500 and £34,000 exclusive of expenses.