Chesham Bois leases on domestic properties are gradually losing value. Where your lease has approximately ninety years left, you should start considering the need for a lease extension. 80 years is a significant number: when the remaining term of a lease drops below this level then you start incurring an additional element called marriage value. Flat owners in Chesham Bois will usually be legally entitled to a lease extension; however a solicitor should be able check your eligibility. In some situations you may not qualify. There are prescribed timetables and formalities to follow once the process is initiated so it’s best to be guided by a conveyancer during the process.
It is conventional wisdom that a residential leasehold with over one hundred years remaining is worth approximately the same as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be equivalent in value to a freehold for decades to come.
| 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset 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. |
Retaining our service will provide you increased control over the value of your Chesham Bois leasehold, as your property will be more valuable and marketable in relation to the lease length should you decide to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Twenty four months ago Theo, started to get close to the eighty-year mark with the lease on his leasehold apartment in Chesham Bois. Having bought his property 18 years previously, the unexpired term was of little relevance. by good luck, he realised he would soon be paying an inflated amount for Extending the lease. Theo was able to extend his lease just ahead of time last May. Theo and the freeholder subsequently agreed on a premium of £6,000 . If the lease had dropped lower than eighty years, the figure would have increased by at least £975.
Last year we were approach by Mr and Mrs. L François , who moved into a one bedroom apartment in Chesham Bois in September 2011. The dilemma was if we could estimate the premium would be to prolong the lease by an additional years. Comparable properties in Chesham Bois with an extended lease were in the region of £270,000. The mid-range ground rent payable was £55 billed quarterly. The lease expired in 2100. Considering the 74 years left we approximated the compensation to the freeholder for the lease extension to be between £9,500 and £11,000 not including legals.
In 2014 we were contacted by Mr and Mrs. H Hall who, having took over the lease of a one bedroom flat in Chesham Bois in September 2008. We are asked if we could approximate the premium would be to extend the lease by 90 years. Identical residencies in Chesham Bois with 100 year plus lease were worth £166,400. The mid-range amount of ground rent was £60 invoiced quarterly. The lease end date was in 2080. Considering the 54 years unexpired we approximated the compensation to the freeholder to extend the lease to be within £32,300 and £37,400 plus expenses.