It’s a harsh truth that a Leagrave and Chalton residential lease is a wasting asset. The lease value drops in proportion to its lease length. The extent of this is taken for granted in the early years due to the deflation being disguised by increases in the Leagrave and Chalton property prices.Where your lease has approximately 90 years left, you should start thinking about a lease extension. If lease term drops below eighty years, you will then be required to pay 50% of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. The marriage fee is the amount of additional value that a lease extension will add the property Most leasehold owners in Leagrave and Chalton will be able to extend under the legislation; however a conveyancer should be able to clarify whether you are eligibility. In some situations you may not be entitled. There are also strict timeframes and procedures to follow once the process has commenced and you will need to be guided by your conveyancer throughout the process.
It is conventional wisdom that a property with in excess of one hundred years unexpired lease term is worth roughly the same as a freehold. Where an further ninety years added to any lease with more than 35 years unexpired, the residence will be equivalent in value to a freehold for many years ahead.
| 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. |
| 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. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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 Leagrave and Chalton can be a difficult process. We recommend you get professional help from a conveyancing solicitor and valuer 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 procuring Leagrave and Chalton lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Following unsuccessful negotiations with the freeholder of her two bedroom apartment in Leagrave and Chalton, Hollie commenced the lease extension process just as her lease was nearing the critical 80-year threshold. The lease extension was concluded in September 2006. The landlord’s costs were negotiated to less than 650 GBP.
Dr Robyn Vincent completed a ground floor apartment in Leagrave and Chalton in October 2008. The dilemma was if we could approximate the price would likely be for a 90 year extension to my lease. Comparative properties in Leagrave and Chalton with 100 year plus lease were worth £300,000. The average ground rent payable was £50 billed every twelve months. The lease lapsed in 2101. Taking into account 76 years outstanding we calculated the compensation to the freeholder to extend the lease to be within £8,600 and £9,800 exclusive of expenses.
In 2009 we were phoned by Mr and Mrs. R Hernández who, having purchased a first floor flat in Leagrave and Chalton in October 1995. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord would be for a 90 year extension to my lease. Identical flats in Leagrave and Chalton with 100 year plus lease were in the region of £257,800. The mid-range amount of ground rent was £65 billed quarterly. The lease lapsed on 17 September 2090. Considering the 65 years unexpired we approximated the premium to the freeholder to extend the lease to be within £18,100 and £20,800 exclusive of expenses.