There is no doubt about it a leasehold property in Chelmsley Wood is a wasting asset as a result of the shortening lease. Where the lease has, beyond one hundred years to run then this decrease may be negligible that being said there will become a point in time when a lease has fewer than 80 years unexpired as part of the premium you will incur is what is known as a marriage value. This could increase sharply the cost. It is the primary rational as to why you should extend the lease sooner than later. Many flat owners in Chelmsley Wood will qualify for this right; nevertheless a conveyancing solicitor can confirm if you qualify for a lease extension. In limited situations you may not qualify, the most common reason being that you have owned the property for under two years.
Leasehold properties in Chelmsley Wood with more than 100 years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and service charges justify it.
| 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. |
| 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. |
| Godiva Mortgages | 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. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Retaining our service gives you better control over the value of your Chelmsley Wood leasehold, as your property will be more valuable and marketable 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.
Last year Edward, started to get near to the eighty-year threshold with the lease on his leasehold apartment in Chelmsley Wood. In buying his property two decades ago, the unexpired term was of no relevance. Luckily, it dawned on him that he needed to take action soon on a lease extension. Edward was able to extend his lease just under the wire last September. Edward and the freeholder via the management company in the end settled on an amount of £6,000 . If the lease had fallen to less than 80 years, the amount would have escalated by a minimum £1,050.
In 2009 we were phoned by Mrs Abigail Lefèvre who, having moved into a purpose-built apartment in Chelmsley Wood in June 2000. We are asked if we could approximate the price could be to prolong the lease by an additional years. Similar homes in Chelmsley Wood with 100 year plus lease were in the region of £264,000. The mid-range ground rent payable was £60 collected yearly. The lease lapsed on 8 February 2077. Given that there were 53 years unexpired we approximated the compensation to the landlord to extend the lease to be between £37,100 and £42,800 not including fees.
Last Spring we were phoned by Mr Eliot Young , who took over the lease of a one bedroom apartment in Chelmsley Wood in May 2009. The question was if we could estimate the price would likely be to extend the lease by ninety years. Comparative premises in Chelmsley Wood with an extended lease were valued about £225,400. The average amount of ground rent was £45 invoiced per annum. The lease ran out on 24 May 2088. Given that there were 64 years left we calculated the premium to the landlord to extend the lease to be within £15,200 and £17,600 plus expenses.