The market value of a leasehold property in Chorleywood and Rickmansworth is impacted by how many years the lease has remaining. If it is close to or less than eighty years you should expect difficulties on re-sale, so it is recommended to arrange for a lease extension ahead of buying. It is preferable to start the lease extension process when a lease still has 82 years remaining so that formalities can be concluded prior to the 80 year cut off point. Leasehold Reform legislation enables Chorleywood and Rickmansworth qualifying lessees to an additional term of ninety years over and above the unexpired term, at a nominal rent (zero ground rent). The purpose of the valuation is to determine the amount payable by the lessee to the freeholder for the acquisition of the lease extension.
Leasehold residencies in Chorleywood and Rickmansworth with more than one hundred years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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. |
Lease extensions in Chorleywood and Rickmansworth can be a difficult process. We recommend you obtain professional help from a conveyancer and valuer with experience in this area.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience procuring Chorleywood and Rickmansworth lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Subsequent to protracted negotiations with the landlord of her studio flat in Chorleywood and Rickmansworth, Holly initiated the lease extension process as the 80 year mark was fast nearing. The legal work was concluded in June 2012. The freeholder’s charges were kept to an absolute minimum.
Dr Oliver Peterson bought a newly refurbished apartment in Chorleywood and Rickmansworth in March 2012. We are asked if we could shed any light on how much (approximately) premium would likely be to extend the lease by an additional years. Comparable flats in Chorleywood and Rickmansworth with a long lease were in the region of £184,000. The average amount of ground rent was £55 invoiced quarterly. The lease ended in 2078. Having 53 years remaining we calculated the premium to the landlord for the lease extension to be between £28,500 and £33,000 plus legals.
An example of a Lease Extension matter before the tribunal for a Chorleywood and Rickmansworth premises is Flats 8, 11 and 15 Craigmore Court 46 Murray Road in December 2013. The tribunal held that the price payable by the Applicant tenant of Flat 8 to acquire an extended lease shall be £26,438 plus £1 to the intermediate lessee . The tribunal held that the price payable by the Applicant tenants of Flat 11 to acquire an extended lease shall be £26,791 plus £1 to the intermediate lessee. The tribunal held that the price payable by the Applicant tenant of Flat 15 to acquire an extended lease shall be £26,638 plus £1 to the intermediate lessee . This case was in relation to 3 flats. The number of years remaining on the existing lease(s) was 71 years.