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 cost of a lease extension can increase materialy once the remaining term is less than 80 years
It is generally considered that a property with in excess of one hundred years remaining is worth approximately the equivalent as a freehold. Where an further ninety years added to any lease with more than 35 years unexpired, the residence will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| 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 |
| 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 wish to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
After unsuccessful correspondence with the landlord of her one bedroom flat in Chelmsley Wood, Yasmin initiated the lease extension process just as her lease was approaching the all-important 80-year threshold. The lease extension was finalised in November 2010. The freeholder’s charges were negotiated to about 450 GBP.
In 2009 we were called by Mr and Mrs. D Wood who, having bought a ground floor apartment in Chelmsley Wood in January 2008. We are asked if we could approximate the premium would be for a ninety year lease extension. Identical properties in Chelmsley Wood with an extended lease were worth £227,800. The average ground rent payable was £45 collected annually. The lease lapsed on 10 October 2091. Having 65 years unexpired we calculated the premium to the landlord for the lease extension to be between £13,300 and £15,400 not including professional charges.
Dr Isabelle Taylor bought a first floor apartment in Chelmsley Wood in July 2004. We are asked if we could estimate the premium could be to extend the lease by 90 years. Identical residencies in Chelmsley Wood with an extended lease were in the region of £275,000. The mid-range amount of ground rent was £55 invoiced every twelve months. The lease concluded in 2102. Having 76 years as a residual term we approximated the premium to the landlord to extend the lease to be within £9,500 and £11,000 not including expenses.