With a domestic leasehold property in Chadwell Heath, you effectively rent it for a certain period of time. Modern flat leases typically tend to be for 99 years or 125. Many leasehold owners become complacent as this seems like a long period of time, you should think about extending the lease sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease becomes disproportionately more expensive especially when there are fewer than 80 years remaining. Anyone in Chadwell Heath with a lease approaching 81 years unexpired should seriously think of extending it as soon as possible. When a lease has below 80 years outstanding, under the current legislation the landlord is entitled to calculate and demand a larger amount, based on a technical multiplication, known as “marriage value” which is due.
Leasehold residencies in Chadwell Heath with over 100 years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and estate charges merit it.
| 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. |
| 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. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| 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. |
Regardless of whether you are a tenant or a landlord in Chadwell Heath,the lease extension solicitors 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.
Last October Nathan, came dangerously near to the eighty-year threshold with the lease on his garden apartment in Chadwell Heath. Having purchased his home 18 years ago, the unexpired term was of minimal bearing. Fortunately, he became aware that he would soon be paying way over the odds for Extending the lease. Nathan arranged for a lease extension just under the wire last July. Nathan and the landlord ultimately settled on the final figure of £5,500 . If the lease had slipped to less than 80 years, the figure would have escalated by at least £1,125.
In 2010 we were approached by Mr and Mrs. D Collins who, having took over the lease of a one bedroom apartment in Chadwell Heath in November 2011. The question was if we could approximate the premium would likely be for a 90 year lease extension. Comparable homes in Chadwell Heath with an extended lease were worth £216,000. The average ground rent payable was £60 collected annually. The lease expired in 2083. Having 58 years unexpired we calculated the compensation to the landlord to extend the lease to be within £28,500 and £33,000 plus professional charges.
An example of a Lease Extension case for a Chadwell Heath residence 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.