With a long leasehold premises in Chelmsley Wood, you are actually buying an entitlement to live in a property for a set period of time. In recent years flat leases are usually granted for 99 years or 125. Many leasehold owners become complacent as this seems like a lengthy period of time, you may consider extending the lease sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease becomes disproportionately greater notably when there are less than 80 years left. Leasehold owners in Chelmsley Wood with a lease nearing 81 years unexpired should seriously think of extending it without delay. When the lease term has below eighty years remaining, under the current legislation the freeholder can calculate and charge a greater premium, assessed on a technical calculation, strangely termed as “marriage value” which is due.
It is generally accepted that a property with over 100 years unexpired lease term is worth approximately the same as a freehold. Where an additional 90 years added to any lease with more than 30 years unexpired, the property will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Chelsea 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Engaging our service will provide you increased control over the value of your Chelmsley Wood leasehold, as your property will be more valuable and marketable in respect of lease length should you wish to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Following unsuccessful correspondence with the landlord of her purpose-built flat in Chelmsley Wood, Chantelle initiated the lease extension process just as her lease was approaching the critical eighty-year deadline. The lease extension completed in June 2009. The landlord’s costs were negotiated to below 650 pounds.
Mr T Lambert was assigned a lease of a ground floor apartment in Chelmsley Wood in April 2001. The question was if we could approximate the premium would likely be for a 90 year lease extension. Comparative residencies in Chelmsley Wood with 100 year plus lease were valued around £270,000. The average ground rent payable was £55 collected yearly. The lease came to a finish on 25 October 2099. Having 74 years unexpired we approximated the premium to the landlord to extend the lease to be within £9,500 and £11,000 plus fees.
In 2013 we were phoned by Dr Henry Sharif who, having moved into a newly refurbished apartment in Chelmsley Wood in February 2003. The dilemma was if we could approximate the premium would be for a 90 year lease extension. Comparative residencies in Chelmsley Wood with a long lease were in the region of £166,400. The mid-range amount of ground rent was £60 invoiced yearly. The lease elapsed on 22 July 2079. Having 54 years remaining we calculated the compensation to the landlord for the lease extension to be within £32,300 and £37,400 exclusive of legals.