With a domestic leasehold premises in Chelmsley Wood, you effectively rent it for a certain amount of time. These days flat leases are usually granted for 99 years or 125. Even though this may appear like a long period of time, you should consider extending the lease sooner rather than later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly particularly once there are less than eighty years remaining. Anyone in Chelmsley Wood with a lease approaching 81 years unexpired should seriously think of extending it without delay. Once the lease term has below eighty years left, under the relevant legislation the freeholder can calculate and charge a greater premium, assessed on a technical computation, strangely termed as “marriage value” which is payable.
It is generally accepted that a residential leasehold with more than one hundred years remaining is worth roughly the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the residence 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| Yorkshire 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. |
Using our service will provide you better control over the value of your Chelmsley Wood leasehold, as your property will be more valuable and saleable in relation to the lease length should you decide to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Twenty four months ago Toby, came seriously close to the eighty-year threshold with the lease on his studio apartment in Chelmsley Wood. In buying his home two decades ago, the length of the lease was of no bearing. by good luck, he recognised he needed to take steps soon on Extending the lease. Toby extended the lease at the eleventh hour last June. Toby and the freeholder ultimately settled on the final figure of £6,000 . If the lease had dipped below 80 years, the figure would have gone up by a minimum £1,050.
In 2013 we were phoned by Dr T Jones who, having acquired a ground floor apartment in Chelmsley Wood in September 2002. The dilemma was if we could estimate the premium could be for a ninety year extension to my lease. Comparative premises in Chelmsley Wood with a long lease were valued about £173,800. The average amount of ground rent was £60 invoiced quarterly. The lease expired on 4 January 2081. Given that there were 55 years remaining we approximated the compensation to the freeholder to extend the lease to be between £31,400 and £36,200 not including costs.
In 2014 we were called by Mr Nathaniel Ali who, having acquired a basement flat in Chelmsley Wood in June 1998. We are asked if we could estimate the compensation to the landlord would be for a ninety year lease extension. Comparative premises in Chelmsley Wood with an extended lease were valued around £235,200. The mid-range amount of ground rent was £45 invoiced yearly. The lease expired in 2092. Considering the 66 years unexpired we estimated the premium to the landlord to extend the lease to be within £12,400 and £14,200 plus expenses.