Unfortunately that a Chorleywood and Rickmansworth residential lease is a wasting asset. As the lease term reduces so does the value of the property. The extent of this is not fully appreciated in the early years due to the loss of value being disguised by increases in the Chorleywood and Rickmansworth property prices.Where your lease has approximately 90 years left, you need to start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease dips under eighty years - otherwise a higher amount will be due. The majority of flat owners in Chorleywood and Rickmansworth will be able to extend under the legislation; however a conveyancing solicitor should be able to confirm whether you are eligibility. In some cases you may not be entitled. There are also strict timeframes and procedures to be adhered to once the process is instigated and you will need to be guided by your lawyer throughout the process.
Leasehold properties in Chorleywood and Rickmansworth with over one hundred years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Yorkshire Building Society | 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. |
Lease extensions in Chorleywood and Rickmansworth can be a difficult process. We recommend you procure guidance from a conveyancer and surveyor well versed in the legislation and lease extension process.
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 in-depth market knowledge dealing with 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.
Last Spring Freddie, came perilously close to the 80-year mark with the lease on his studio flat in Chorleywood and Rickmansworth. In buying his home two decades ago, the unexpired term was of minimal concern. Luckily, he realised he needed to take action soon on Extending the lease. Freddie arranged for a lease extension just under the wire in August. Freddie and the freeholder via the management company subsequently settled on the final figure of £5,500 . If the lease had slipped lower than 80 years, the sum would have become more exhorbitant by a minimum £875.
In 2012 we were contacted by Mr C Reed who, having moved into a purpose-built apartment in Chorleywood and Rickmansworth in January 2012. We are asked if we could estimate the premium could be for a 90 year lease extension. Comparative premises in Chorleywood and Rickmansworth with 100 year plus lease were worth £295,000. The average amount of ground rent was £45 collected per annum. The lease concluded in 2100. Considering the 74 years as a residual term we estimated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 plus professional charges.
An example of a Lease Extension decision for a Chorleywood and Rickmansworth flat 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 unexpired residue of the current lease was 71 years.