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. If lease term falls under eighty years, you will then be required to pay 50% of the property's 'marriage value' on top of the usual cost of the lease extension to your landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Flat owners in Chesham Bois will usually qualify for a lease extension; however It would be wise to check with a lawyer to confirm if you qualify. In some situations you may not qualify. There are prescribed deadlines and procedures to comply with once the process has started so it’s best to be guided by a lawyer during the process.
It is generally accepted that a property with in excess of one hundred years remaining is worth roughly the same as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| 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. |
| Halifax | 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Chesham Bois can be a difficult process. We recommend you secure guidance from a lawyer and surveyor with experience in this area.
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 procuring Chesham Bois lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Off the back of unsuccessful correspondence with the landlord of her purpose-built apartment in Chesham Bois, Samantha commenced the lease extension process just as her lease was nearing the crucial 80-year threshold. The legal work completed in June 2015. The landlord’s costs were restricted to under 550 GBP.
Mr W Evans took over the lease of a ground floor flat in Chesham Bois in August 2004. The dilemma was if we could shed any light on how much (approximately) premium would likely be to prolong the lease by 90 years. Comparative flats in Chesham Bois with a long lease were worth £227,800. The average amount of ground rent was £45 invoiced yearly. The lease expired on 4 July 2090. Taking into account 65 years left we calculated the premium to the freeholder to extend the lease to be between £13,300 and £15,400 plus fees.
Mr and Mrs. Y Lee took over the lease of a purpose-built apartment in Chesham Bois in February 2005. The question was if we could approximate the compensation to the landlord would be for a ninety year lease extension. Comparative flats in Chesham Bois with an extended lease were worth £270,000. The average amount of ground rent was £55 collected every twelve months. The lease ended in 2101. Considering the 76 years left we calculated the premium to the landlord to extend the lease to be within £9,500 and £11,000 not including costs.