There is no doubt about it a leasehold flat or house in Chadwell Heath is a wasting asset as a result of the diminishing lease term. If the residual term has, beyond 100 years remaining then this decrease may be of little impact that being said there will become a stage when a lease has under than 80 years left 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 as opposed to later. Many flat owners in Chadwell Heath will qualify for this right; that being said a lawyer can confirm if you qualify to extend your lease. In limited situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
It is conventional wisdom that a property with more than one hundred years remaining is worth roughly the same as a freehold. Where an further ninety years added to all but the shortest lease, the premises 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 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. |
| Birmingham Midshires | 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. |
Using 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 decide to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
In the wake of 9 months of protracted discussions with the freeholder of her basement flat in Chadwell Heath, Ellen started the lease extension process just as her lease was approaching the crucial 80-year mark. The lease extension completed in July 2006. The landlord’s charges were kept to an absolute minimum.
Mr and Mrs. M Peterson purchased a basement apartment in Chadwell Heath in March 1996. We are asked if we could shed any light on how much (roughly) price would be to extend the lease by ninety years. Similar flats in Chadwell Heath with a long lease were valued around £240,600. The mid-range ground rent payable was £60 collected quarterly. The lease finished in 2087. Having 62 years remaining we estimated the premium to the landlord for the lease extension to be within £21,900 and £25,200 exclusive of professional charges.
An example of a Lease Extension matter before the tribunal 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 number of years remaining on the existing lease(s) was 61.36 years.