The value of Chelmsley Wood leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of a lease extension can increase substantially once the unexpired lease term is less than eighty years
It is conventional wisdom that a residential leasehold with more than one hundred years unexpired lease term is worth roughly the same as a freehold. Where an additional ninety years added to any lease with more than 30 years unexpired, the residence will be equivalent in value to 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Chelmsley Wood can be a difficult process. We recommend you procure guidance from a conveyancing solicitor and surveyor well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience procuring Chelmsley Wood lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Callum owned a high value apartment in Chelmsley Wood on the market with a lease of fraction over 72 years outstanding. Callum informally spoke with his freeholder a well known local-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 subject to a rise in the rent to £50 per annum. Ordinarily, ground rent would not be due on a lease extension were Callum to exercise his statutory right. Callum procured expert advice and was able to make an informed decision and deal with the matter and ending up with a market value flat.
In 2009 we were approached by Mrs Y Morel who, having was assigned a lease of a one bedroom apartment in Chelmsley Wood in March 2012. The dilemma was if we could estimate the premium would be for a ninety year extension to my lease. Comparative premises in Chelmsley Wood with a long lease were in the region of £280,000. The average ground rent payable was £55 invoiced quarterly. The lease ran out on 28 August 2102. Considering the 77 years outstanding we estimated the compensation to the landlord to extend the lease to be within £13,300 and £15,400 not including professional charges.
In 2011 we were phoned by Mr C Roux who, having was assigned a lease of a one bedroom flat in Chelmsley Wood in October 2002. The question was if we could approximate the compensation to the landlord could be to extend the lease by 90 years. Similar residencies in Chelmsley Wood with 100 year plus lease were in the region of £183,600. The average amount of ground rent was £65 collected quarterly. The lease end date was in 2082. Considering the 57 years as a residual term we calculated the compensation to the landlord for the lease extension to be within £28,500 and £33,000 not including fees.