The rule of thumb is, all other factors being equal, the shorter the lease the more costly the premium. Qualifying leaseholders in Chaddesden have the legal entitlement to extend the lease for an additional ninety years under legislation. Please give careful consideration before delaying your Chaddesden lease extension. Putting off the costs now simply escalates the amount you will eventually be required to pay for a lease extension.
It is conventional wisdom that a property with more than 100 years remaining is worth roughly the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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 |
Engaging our service gives you enhanced control over the value of your Chaddesden leasehold, as your property will be more valuable and saleable in relation to the lease length should you want to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Lewis was the the leasehold proprietor of a conversion flat in Chaddesden on the market with a lease of just over fifty eight years unexpired. Lewis informally contacted his landlord a well known London-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years subject to a rise in the rent to £100 per annum. Ordinarily, ground rent would not be payable on a lease extension were Lewis to invoke his statutory right. Lewis obtained expert advice and was able to make a more informed decision and deal with the matter and sell the flat.
Mrs Isabella Murphy completed a basement apartment in Chaddesden in January 1998. We are asked if we could shed any light on how much (approximately) compensation to the landlord could be for a 90 year lease extension. Comparative residencies in Chaddesden with 100 year plus lease were valued around £235,200. The mid-range amount of ground rent was £45 invoiced monthly. The lease ran out on 4 April 2091. Having 66 years outstanding we calculated the premium to the freeholder to extend the lease to be within £12,400 and £14,200 exclusive of legals.
Last Spring we were called by Ms Amy Gray , who was assigned a lease of a ground floor apartment in Chaddesden in August 2004. The dilemma was if we could estimate the price could be for a ninety year lease extension. Comparative flats in Chaddesden with a long lease were in the region of £280,000. The average amount of ground rent was £55 collected quarterly. The lease expired in 2102. Considering the 77 years as a residual term we approximated the compensation to the landlord to extend the lease to be between £13,300 and £15,400 exclusive of expenses.