The re-sale value of a leasehold property in Chorleywood depends on how long the lease has left to run. If it is close to or fewer than eighty years you should envisage difficulties on re-sale, so it is advisable to arrange for the lease to be extended before purchasing. It is ideal to start the process of extending the lease is when the lease still has 82 years remaining so that a lease extension can be finalised in advance of the 80 year threshold. Leasehold Reform legislation entitles Chorleywood qualifying lessees to a 90 year extension added to their remaining lease term (ie if your lease has 50 years remaining the statutory lease extension will provide a new term of 140 years). The reason of the valuation is to arrive at an opinion of the premium payable by the lessee to the freeholder for the acquisition of the lease extension.
Leasehold properties in Chorleywood with more than 100 years left 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 circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| 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; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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 |
Irrespective of whether you are a tenant or a landlord in Chorleywood,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Chorleywood valuers.
In 2014 Isaac, came dangerously close to the eighty-year mark with the lease on his purpose- built apartment in Chorleywood. In buying his property 19 years ago, the lease term was of little importance. Thankfully, he realised he would soon be paying an escalated premium for Extending the lease. Isaac was able to extend his lease at the eleventh hour last July. Isaac and the freeholder subsequently agreed on an amount of £5,000 . If the lease had slipped lower than eighty years, the sum would have increased by a minimum £1,125.
Dr Alexandra Alexander bought a first floor flat in Chorleywood in October 2005. We are asked if we could shed any light on how much (roughly) compensation to the landlord would be to prolong the lease by a further 90 years. Comparative properties in Chorleywood with 100 year plus lease were worth £264,000. The average amount of ground rent was £60 invoiced per annum. The lease concluded in 2078. Taking into account 53 years left we estimated the compensation to the freeholder for the lease extension to be within £37,100 and £42,800 not including legals.
An example of a Lease Extension case for a Chorleywood property 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 remaining number of years on the lease was 71 years.