Unfortunately that a Chesham Bois residential lease is a wasting asset. As the lease term reduces so does the value of the property. The extent of this is taken for granted in the early years due to the reduction being disguised by increases in the Chesham Bois property prices.Where your lease has approximately ninety years left, you should start thinking about a lease extension. If the number of years remaining falls below eighty years, you will end up paying half of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add the property The majority of flat owners in Chesham Bois will be able to extend under the legislation; however a conveyancer will be able to confirm if you are eligibility. In some situations you may not qualify. There are also strict timetables and procedures to be adhered to once the process is initiated and you will need to be guided by your conveyancing solicitor throughout the formalities.
It is conventional wisdom that a property with more than 100 years remaining is worth roughly the same as a freehold. Where an further 90 years added to all but the shortest lease, the property will be worth the same as a freehold for many years ahead.
| 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
Using our service will provide you better control over the value of your Chesham Bois leasehold, as your property will be more valuable and saleable in relation to the lease length should you want to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Last year Aaron, started to get near to the eighty-year mark with the lease on his studio flat in Chesham Bois. Having bought his property two decades ago, the length of the lease was of little bearing. by good luck, he realised he needed to take action soon on Extending the lease. Aaron arranged for a lease extension just under the wire in April. Aaron and the freeholder via the management company in the end settled on an amount of £5,500 . If the lease had fallen below 80 years, the figure would have become more exhorbitant by a minimum £1,125.
Last Christmas we were approach by Mr and Mrs. C Flores , who took over the lease of a studio flat in Chesham Bois in October 2004. The dilemma was if we could approximate the compensation to the landlord would be to extend the lease by a further 90 years. Identical homes in Chesham Bois with a long lease were worth £256,600. The mid-range ground rent payable was £60 collected quarterly. The lease came to a finish on 2 September 2078. Considering the 52 years outstanding we estimated the premium to the landlord for the lease extension to be between £41,800 and £48,400 exclusive of professional charges.
Last Spring we were called by Dr U Walker , who took over the lease of a first floor apartment in Chesham Bois in April 2001. The dilemma was if we could shed any light on how much (approximately) price would likely be to prolong the lease by a further 90 years. Comparable flats in Chesham Bois with a long lease were in the region of £215,600. The mid-range ground rent payable was £45 collected monthly. The lease ended on 16 May 2088. Having 62 years unexpired we estimated the compensation to the landlord for the lease extension to be between £18,100 and £20,800 exclusive of professional charges.