The re-sale value of a leasehold property in Chopwell is impacted by how many years the lease has left to run. If it is near to or fewer than eighty years you should anticipate difficulties on re-sale, so it is recommended to arrange for a lease extension prior to buying. It is preferable to start the lease extension process when the lease still has 82 years to run so that formalities can be addressed prior to the eighty year mark. Statute entitles Chopwell qualifying lessees to an additional term of ninety years on top of the existing term, at a nominal rent (no ground rent). The intention of the valuation is to arrive at an opinion of the amount payable by the lessee to the freeholder for the purchase of the lease extension.
Leasehold premises in Chopwell with more than 100 years outstanding on the lease are often regarded as a ‘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 to be gained by buying the freehold unless savings on ground rent and estate charges merit 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. |
| Coventry Building Society | 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. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Using our service will provide you better control over the value of your Chopwell leasehold, as your property will be more valuable and saleable 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.
Samuel owned a 2 bedroom flat in Chopwell being sold with a lease of just over 72 years outstanding. Samuel on an informal basis spoke with his landlord a well known local-based freehold company and enquired on a premium to extend the lease. The landlord was keen to agree an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £50 yearly. Ordinarily, ground rent would not be due on a lease extension were Samuel to invoke his statutory right. Samuel procured expert legal guidance and secured an acceptable resolution informally and sell the flat.
Ms N Scott owned a one bedroom apartment in Chopwell in November 1999. The dilemma was if we could estimate the price could be for a ninety year lease extension. Comparative residencies in Chopwell with a long lease were worth £200,000. The average ground rent payable was £50 invoiced monthly. The lease expiry date was in 2102. Considering the 77 years unexpired we estimated the premium to the landlord for the lease extension to be within £8,600 and £9,800 not including legals.
Mr Liam James acquired a one bedroom flat in Chopwell in July 1995. The dilemma was if we could approximate the compensation to the landlord could be to extend the lease by 90 years. Comparable premises in Chopwell with 100 year plus lease were valued about £265,200. The mid-range amount of ground rent was £65 billed quarterly. The lease lapsed in 2091. Considering the 66 years left we estimated the compensation to the freeholder for the lease extension to be within £15,200 and £17,600 not including fees.