Leagrave and Chalton leases on residential properties are gradually losing value. Where your lease has in the region of ninety years remaining, you should start considering the need for a lease extension. 80 years is a significant number: when the remaining term of a lease drops below this level then you begin incurring an additional element called marriage value. Flat owners in Leagrave and Chalton will usually qualify for a lease extension; however It would be wise to check with a conveyancer to check your eligibility. In some cases you may not qualify. There are also strict deadlines and formalities to follow once the process is initiated so it’s wise to be guided by a conveyancer during the process.
Leasehold residencies in Leagrave and Chalton with more than 100 years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and service 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Regardless of whether you are a tenant or a landlord in Leagrave and Chalton,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Leagrave and Chalton valuers.
16 months ago Riley, came critically near to the eighty-year threshold with the lease on his garden apartment in Leagrave and Chalton. Having purchased his property 19 years previously, the unexpired term was of minimal importance. Thankfully, he became aware that he would imminently be paying an inflated amount for Extending the lease. Riley extended the lease just in the nick of time last May. Riley and the freeholder eventually agreed on sum of £5,000 . If he not met the deadline, the sum would have become more costly by a minimum £1,025.
Mr and Mrs. S Bennett owned a one bedroom flat in Leagrave and Chalton in January 2006. We are asked if we could estimate the price could be to extend the lease by a further 90 years. Identical properties in Leagrave and Chalton with an extended lease were in the region of £213,600. The average amount of ground rent was £60 collected every twelve months. The lease lapsed on 2 September 2082. Given that there were 57 years as a residual term we estimated the premium to the freeholder to extend the lease to be within £30,400 and £35,200 exclusive of costs.
Mrs D Miller was assigned a lease of a first floor flat in Leagrave and Chalton in November 2011. We are asked if we could estimate the compensation to the landlord could be to extend the lease by 90 years. Comparable properties in Leagrave and Chalton with a long lease were worth £200,000. The average amount of ground rent was £50 invoiced yearly. The lease terminated on 17 October 2102. Given that there were 77 years as a residual term we estimated the premium to the landlord to extend the lease to be between £8,600 and £9,800 not including fees.