As the length of the unexpired term of a Chorleywood domestic lease lessens so does its value and therefore the value of your property. If the lease has, beyond 99 years remaining then this decrease may be of little impact nevertheless there will become a point in time when a lease has fewer than 80 years remaining as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the primary reason why you should consider extending sooner rather than later. Many flat owners in Chorleywood will meet the qualifying criteria; however a conveyancing solicitor will be able to advise if you qualify for a lease extension. In certain situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
Leasehold premises in Chorleywood with over one hundred years remaining on the lease are sometimes referred to as ‘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 freehold unless savings on ground rent and service charges justify 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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. |
Irrespective of whether you are a tenant or a freeholder in Chorleywood,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Chorleywood valuers.
Kai was the the leasehold owner of a high value apartment in Chorleywood being marketed with a lease of fraction over 61 years outstanding. Kai on an informal basis contacted his landlord a well known London-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years on the basis of an increased rent to £125 per annum. Ordinarily, ground rent would not be due on a lease extension were Kai to exercise his statutory right. Kai obtained expert legal guidance and secured an acceptable resolution informally and ending up with a market value flat.
Dr Harrison Kelly purchased a purpose-built flat in Chorleywood in October 2001. The question was if we could approximate the price would be for a 90 year lease extension. Comparative flats in Chorleywood with an extended lease were worth £232,800. The average amount of ground rent was £45 collected quarterly. The lease elapsed in 2090. Considering the 65 years unexpired we estimated the premium to the landlord to extend the lease to be between £13,300 and £15,400 not including professional charges.
An example of a Lease Extension case for a Chorleywood 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 affected 3 flats. The unexpired term as at the valuation date was 71 years.