On the balance of probabilities where you own a flat in Chaddesden you actually own a long leasehold interest over your property
It is generally considered that a residential leasehold with in excess of 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an further 90 years added to any lease with more than 30 years left, the residence will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Coventry Building Society | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Regardless of whether you are a tenant or a landlord in Chaddesden,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Chaddesden valuers.
Off the back of lengthy negotiations with the freeholder of her studio apartment in Chaddesden, Mollie initiated the lease extension process just as her lease was nearing the critical 80-year mark. The lease extension completed in January 2005. The freeholder’s costs were kept to an absolute minimum.
In 2012 we were called by Mr and Mrs. D Young who, having was assigned a lease of a ground floor flat in Chaddesden in May 2006. The dilemma was if we could estimate the compensation to the landlord could be for a 90 year extension to my lease. Similar premises in Chaddesden with a long lease were valued around £173,800. The mid-range amount of ground rent was £60 collected every twelve months. The lease ended on 25 May 2080. Having 55 years unexpired we estimated the compensation to the landlord to extend the lease to be between £31,400 and £36,200 exclusive of expenses.
In 2009 we were e-mailed by Mr B Mercier who, having owned a basement apartment in Chaddesden in October 2012. The question was if we could approximate the compensation to the landlord could be to prolong the lease by 90 years. Comparative residencies in Chaddesden with an extended lease were valued about £235,200. The mid-range amount of ground rent was £45 collected quarterly. The lease ended in 2091. Considering the 66 years remaining we estimated the premium to the landlord for the lease extension to be between £12,400 and £14,200 not including costs.