The re-sale value of a leasehold property in Chaddesden is impacted by how long the lease has remaining. If it is close to or less than eighty years you should envisage difficulties on re-sale, so it is recommended to arrange for a lease extension before purchasing. It is ideal to start the process of extending the lease is when the lease still has 82 years unexpired so that all matters can be concluded prior to the 80 year mark. Leasehold Reform legislation entitles Chaddesden qualifying lessees to acquire a new lease which will be for the current unexpired lease term plus a further term of ninety years. The purpose 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.
It is conventional wisdom that a property with more than one hundred years remaining is worth approximately the same as a freehold. Where an additional ninety years added to all but the shortest lease, the residence will be worth the same as a freehold for many years in the future.
| 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Engaging our service gives you increased control over the value of your Chaddesden leasehold, as your property will be more valuable and saleable in respect of lease length should you want to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
In recent months Mason, came very near to the eighty-year threshold with the lease on his studio apartment in Chaddesden. In buying his flat two decades ago, the length of the lease was of little interest. Luckily, he realised he would soon be paying an escalated premium for a lease extension. Mason was able to extend his lease just under the wire last March. Mason and the landlord eventually settled on an amount of £5,000 . If he failed to meet the deadline, the sum would have gone up by a minimum £850.
In 2014 we were called by Mrs Isabel Martin who, having purchased a first floor flat in Chaddesden in July 2009. We are asked if we could estimate the price would be to prolong the lease by 90 years. Comparative homes in Chaddesden with an extended lease were valued around £242,600. The mid-range amount of ground rent was £45 invoiced every twelve months. The lease ended on 26 October 2091. Given that there were 67 years outstanding we approximated the premium to the freeholder for the lease extension to be within £11,400 and £13,200 not including expenses.
In 2013 we were e-mailed by Ms Harriet André who, having took over the lease of a basement apartment in Chaddesden in September 2010. The question was if we could estimate the compensation to the landlord would be for a ninety year lease extension. Identical flats in Chaddesden with a long lease were valued around £280,000. The average ground rent payable was £55 billed yearly. The lease elapsed in 2102. Considering the 78 years outstanding we calculated the compensation to the freeholder for the lease extension to be between £13,300 and £15,400 plus professional charges.