The market value of a leasehold property in Chadwell Heath depends on how long the lease has left to run. If it is near to or fewer than 80 years you should foresee difficulties on re-sale, so it is advisable to arrange for the lease to be extended ahead of buying. It is preferable to commence the lease extension process when the lease still has 82 years unexpired so that formalities can be addressed prior to the eighty year mark. Leasehold Reform legislation entitles Chadwell Heath qualifying lessees to an additional term of 90 years over and above the remaining term, at a peppercorn rent (zero ground rent). 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 over 100 years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in buying the freehold unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Engaging 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 relation to the lease length should you decide to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Alexander was the the leasehold owner of a conversion flat in Chadwell Heath being sold with a lease of just over 59 years remaining. Alexander on an informal basis approached his freeholder being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord was keen to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent to start with set at £100 per annum and doubled every 25 years thereafter. No ground rent would be payable on a lease extension were Alexander to exercise his statutory right. Alexander procured expert legal guidance and was able to make an informed judgement and deal with the matter and sell the property.
Last Winter we were called by Mr and Mrs. N Flores , who took over the lease of a garden apartment in Chadwell Heath in October 1995. The dilemma was if we could approximate the price could be for a 90 year extension to my lease. Comparable residencies in Chadwell Heath with an extended lease were worth £248,000. The average amount of ground rent was £65 collected annually. The lease elapsed on 24 April 2089. Having 63 years remaining we approximated the premium to the freeholder to extend the lease to be within £20,900 and £24,200 not including fees.
An example of a Lease Extension case for a Chadwell Heath flat 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 number of years remaining on the existing lease(s) was 61.36 years.