Owning a flat usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. your lease will ordinarily be granted for a fixed period of time , usually 99 or 125 years, although we have come across longer and shorter terms in Chigwell. Clearly, the length of lease remaining shortens over time. This may slip by relatively unnoticed when the property needs to be disposed of or re-mortgaged. The fewer the years remaining the less it is worth and the more expensive it will be to extend the lease. Eligible leaseholders in Chigwell have the legal entitlement to extend the lease for an additional ninety years under legislation. Do give careful deliberation before delaying your Chigwell lease extension. Holding off that expense now likely increases the price you will ultimately have to pay to extend your lease
Leasehold residencies in Chigwell with over 100 years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The conveyancers that we work with procure Chigwell lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
Oscar owned a conversion apartment in Chigwell being marketed with a lease of a little over sixty years outstanding. Oscar informally contacted his landlord being a well known Manchester-based freehold company for a lease extension. The landlord was prepared to give an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent at the outset set at £150 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Oscar to exercise his statutory right. Oscar procured expert legal guidance and secured an acceptable resolution without going to tribunal and ending up with a market value flat.
Ms V Petit completed a one bedroom flat in Chigwell in March 2011. We are asked if we could shed any light on how much (roughly) compensation to the landlord would likely be for a 90 year lease extension. Comparable residencies in Chigwell with an extended lease were valued about £168,800. The average ground rent payable was £60 invoiced annually. The lease termination date was on 28 September 2079. Given that there were 55 years unexpired we estimated the compensation to the landlord for the lease extension to be between £31,400 and £36,200 not including expenses.
An example of a Freehold Enfranchisement decision for a Chigwell flat is 201 & 201a St. Barnabas Road in October 2013. The Tribunal decided that the price to be paid by the Applicants for the freehold interest is £20,071. This case was in relation to 2 flats. The remaining number of years on the lease was 69.26 years.