There is no doubt about it a leasehold property in Chadwell Heath is a wasting asset as a result of the shortening lease. Where the residual term has, more than 125 years remaining then this decrease may be of little impact that being said there will become a stage when a lease has under than eighty years unexpired as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the main rational as to why you should consider extending sooner rather than later. Most flat owners in Chadwell Heath will qualify for this right; nevertheless a conveyancer should be able to confirm if you qualify for a lease extension. In limited situations you may not qualify, the most frequent reason being that you have owned the property for less than two years.
It is conventional wisdom that a property with more than one hundred years unexpired lease term is worth roughly the same as a freehold. Where an additional 90 years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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; |
| Chelsea 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
Retaining our service will provide you increased control over the value of your Chadwell Heath leasehold, as your property will be more valuable and marketable in terms of lease length should you want to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Austin owned a conversion apartment in Chadwell Heath being marketed with a lease of a few days over 59 years unexpired. Austin on an informal basis contacted his landlord being a well known London-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years on the basis of a new rent at the outset set at £200 per annum and increase every 25 years thereafter. No ground rent would be payable on a lease extension were Austin to exercise his statutory right. Austin obtained expert legal guidance and secured an acceptable deal informally and ending up with a market value flat.
Mr and Mrs. A Watson acquired a newly refurbished flat in Chadwell Heath in July 2003. We are asked if we could approximate the compensation to the landlord could be to prolong the lease by 90 years. Identical properties in Chadwell Heath with 100 year plus lease were worth £223,400. The average amount of ground rent was £60 billed every twelve months. The lease concluded on 10 September 2085. Having 59 years as a residual term we estimated the compensation to the freeholder for the lease extension to be between £27,600 and £31,800 plus fees.
An example of a Lease Extension decision for a Chadwell Heath premises is 49 Aldborough Road South in July 2012. The Tribunal decided that the premium payable for the grant of the new lease was £13,925 This case related to 1 flat. The unexpired lease term was 61.36 years.