With a domestic leasehold property in Chelmsley Wood, you are actually buying a right to live in a property for a set period of time. These days flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you may consider extending the lease sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly particularly when there are fewer than 80 years remaining. Anyone in Chelmsley Wood with a lease approaching 81 years remaining should seriously think of extending it sooner as opposed to later. Once a lease has under eighty years remaining, under the current Act the landlord is entitled to calculate and levy a greater amount, assessed on a technical multiplication, strangely termed as “marriage value” which is due.
Leasehold premises in Chelmsley Wood with over one hundred years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Chelmsley Wood can be a difficult process. We recommend you obtain professional help from a conveyancer and valuer well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience dealing with Chelmsley Wood lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
During the course of the last few months Max, started to get near to the eighty-year threshold with the lease on his purpose- built flat in Chelmsley Wood. Having bought his property two decades ago, the unexpired term was of minimal interest. Luckily, he noticed he needed to take steps soon on Extending the lease. Max was able to extend his lease just in the nick of time last May. Max and the landlord who owned the flat above subsequently agreed on the final figure of £6,000 . If the lease had gone below 80 years, the figure would have gone up by a minimum £1,075.
Dr F González owned a first floor flat in Chelmsley Wood in April 2010. We are asked if we could approximate the price would likely be to extend the lease by 90 years. Similar homes in Chelmsley Wood with a long lease were worth £176,200. The average amount of ground rent was £65 billed every twelve months. The lease end date was on 4 October 2081. Given that there were 56 years as a residual term we calculated the compensation to the landlord to extend the lease to be within £29,500 and £34,000 exclusive of legals.
Last Winter we were contacted by Mr and Mrs. Y Mason , who moved into a first floor apartment in Chelmsley Wood in June 2007. We are asked if we could estimate the compensation to the landlord would likely be for a ninety year lease extension. Comparative flats in Chelmsley Wood with a long lease were worth £242,600. The average ground rent payable was £45 billed monthly. The lease expiry date was in 2092. Having 67 years outstanding we approximated the premium to the landlord for the lease extension to be within £11,400 and £13,200 plus legals.