It’s a harsh truth that a Chopwell residential lease is a deteriorating asset. As the lease term reduces so does the value of the property. The extent of this is taken for granted in the first few years due to the depreciation being disguised by increases in the Chopwell property prices.Where your lease has approximately 90 years left, you should start thinking about a lease extension. If lease term dips under 80 years, you will then be required to pay half of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add the property Most flat owners in Chopwell will be able to extend under the legislation; however a lawyer should be able to confirm if you are eligibility. In some cases 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 conveyancer throughout the formalities.
Leasehold properties in Chopwell with over one hundred years remaining 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 home. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate charges warrant it.
| 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. |
| 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; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
Engaging our service gives you increased control over the value of your Chopwell leasehold, as your property will be more valuable and marketable in terms of lease length should you wish to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
In 2014 Ollie, came critically near to the 80-year threshold with the lease on his purpose- built flat in Chopwell. Having purchased his home two decades ago, the unexpired term was of minimal interest. by good luck, he noticed he would soon be paying an escalated premium for Extending the lease. Ollie arranged for a lease extension just in the nick of time in July. Ollie and the freeholder eventually agreed on sum of £6,000 . If the lease had gone below 80 years, the price would have escalated by a minimum £1,125.
Last Spring we were contacted by Mr and Mrs. A Ramírez , who completed a purpose-built flat in Chopwell in October 2006. We are asked if we could shed any light on how much (roughly) premium would be for a 90 year lease extension. Comparative properties in Chopwell with 100 year plus lease were in the region of £216,000. The mid-range amount of ground rent was £60 invoiced annually. The lease concluded on 20 February 2083. Taking into account 58 years outstanding we estimated the compensation to the freeholder for the lease extension to be between £28,500 and £33,000 plus legals.
Dr P Campbell was assigned a lease of a studio flat in Chopwell in May 2011. The dilemma was if we could shed any light on how much (roughly) premium could be to prolong the lease by ninety years. Comparable residencies in Chopwell with a long lease were in the region of £205,000. The mid-range ground rent payable was £50 collected monthly. The lease came to a finish on 27 April 2104. Given that there were 79 years outstanding we calculated the premium to the freeholder to extend the lease to be between £7,600 and £8,800 exclusive of fees.