The re-sale value of a leasehold property in Chadwell Heath depends on how many years the lease has left to run. If it is near to or less than eighty years you should anticipate problems on re-sale, so it is advisable to arrange for a lease extension ahead of purchasing. It is preferable to commence the lease extension process when a lease still has 82 years unexpired so that a lease extension can be finalised in advance of the eighty year threshold. Current legislation entitles Chadwell Heath qualifying lessees to obtain a new lease which will be for the current unexpired lease term plus a supplemental term of 90 years. The purpose of the valuation is to arrive at an opinion of the amount payable by the lessee to the freeholder for the purchase of the lease extension.
Leasehold properties in Chadwell Heath with more than 100 years left on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Barclays plc | |
| Coventry Building Society | |
| Santander | |
| TSB | |
| Yorkshire Building Society |
Irrespective of whether you are a tenant or a freeholder in Chadwell Heath,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Chadwell Heath valuers.
In 2014 Thomas, came precariously near to the 80-year threshold with the lease on his first floor apartment in Chadwell Heath. In buying his home two decades ago, the lease term was of no relevance. Fortunately, it dawned on him that he needed to take action soon on Extending the lease. Thomas extended the lease at the eleventh hour in August. Thomas and the freeholder via the management company ultimately agreed on an amount of £5,500 . If the lease had descended below 80 years, the price would have become more exhorbitant by a minimum £900.
Mr and Mrs. B Gunderson acquired a basement apartment in Chadwell Heath in May 2000. We are asked if we could shed any light on how much (roughly) price could be to extend the lease by an additional years. Identical homes in Chadwell Heath with an extended lease were in the region of £205,000. The average ground rent payable was £50 billed monthly. The lease came to a finish in 2105. Taking into account 79 years remaining we estimated the compensation to the freeholder for the lease extension to be between £8,600 and £9,800 exclusive of costs.
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 affected 1 flat. The unexpired term as at the valuation date was 61.36 years.