There is no doubt about it a leasehold flat or house in Chesham Bois is a wasting asset as a result of the diminishing lease term. Where the lease has, over 99 years to run then this decrease may be fractional however there will become a stage when a lease has under than 80 years remaining as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the main logic behind why you should consider extending without delay. Most flat owners in Chesham Bois will qualify for this right; however a conveyancing solicitor should be able to confirm if you are eligible to extend your lease. In limited situations you may not qualify, the most frequent reason being that you have owned the property for under two years.
Leasehold residencies in Chesham Bois with over 100 years unexpired on the lease are sometimes referred to as ‘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 upside in buying the freehold unless savings on ground rent and service charges merit it.
| 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start 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 gives you enhanced 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 want to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Blake owned a high value flat in Chesham Bois on the market with a lease of a few days over 61 years outstanding. Blake on an informal basis contacted his freeholder being a well known London-based freehold company and enquired on a premium to extend the lease. The landlord was keen to agree an extension on non-statutory terms taking the lease to 125 years subject to a new rent at the outset set at £150 per annum and doubled every 25 years thereafter. No ground rent would be due on a lease extension were Blake to invoke his statutory right. Blake procured expert advice and was able to make a more informed decision and deal with the matter and ending up with a market value flat.
Dr H Michel took over the lease of a one bedroom apartment in Chesham Bois in September 1999. The dilemma was if we could estimate the premium would be for a ninety year extension to my lease. Comparative premises in Chesham Bois with a long lease were valued around £215,600. The average amount of ground rent was £45 invoiced monthly. The lease terminated on 10 April 2088. Having 62 years outstanding we approximated the premium to the landlord to extend the lease to be within £18,100 and £20,800 plus costs.
Mr Elijah Robinson moved into a studio flat in Chesham Bois in May 2010. We are asked if we could estimate the price would be to extend the lease by an additional years. Comparable flats in Chesham Bois with 100 year plus lease were valued about £265,000. The average ground rent payable was £50 collected monthly. The lease came to a finish on 23 November 2099. Considering the 73 years as a residual term we calculated the compensation to the freeholder for the lease extension to be between £9,500 and £11,000 not including expenses.