The closer a residential lease in Chopwell nears to zero years unexpired, the more it reduces the value of the property. Where the residual term has, over 100 years remaining then this decrease may be of little impact that being said there will become a stage when a lease has less than 80 years remaining as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the main rational as to why you should consider extending sooner rather than later. The majority of flat owners in Chopwell will meet the qualifying criteria; however a conveyancing solicitor should be able to advise whether you are eligible to extend your lease. In limited situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
Leasehold residencies in Chopwell with over 100 years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Godiva Mortgages | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Halifax | Minimum 70 years from the date of the mortgage. |
Irrespective of whether you are a tenant or a freeholder in Chopwell,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Chopwell valuers.
Ali owned a 2 bedroom apartment in Chopwell on the market with a lease of a few days over 72 years unexpired. Ali on an informal basis spoke with his freeholder a well known London-based freehold company and enquired on a premium to extend the lease. The landlord was keen to give an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £200 per annum. Ordinarily, ground rent would not be due on a lease extension were Ali to invoke his statutory right. Ali obtained expert legal guidance and secured satisfactory deal without going to tribunal and sell the flat.
Mr and Mrs. S André moved into a garden apartment in Chopwell in August 1998. We are asked if we could estimate the price would be to prolong the lease by an additional years. Identical homes in Chopwell with an extended lease were worth £250,400. The average ground rent payable was £65 billed every twelve months. The lease lapsed on 12 February 2090. Having 64 years as a residual term we calculated the premium to the landlord to extend the lease to be within £19,000 and £22,000 not including professional charges.
Mrs B Richardson bought a basement apartment in Chopwell in August 2005. The dilemma was if we could shed any light on how much (approximately) premium would be to extend the lease by 90 years. Similar residencies in Chopwell with an extended lease were worth £184,000. The mid-range amount of ground rent was £55 collected monthly. The lease terminated in 2079. Considering the 53 years remaining we approximated the compensation to the landlord for the lease extension to be between £28,500 and £33,000 not including expenses.