There is no doubt about it a leasehold flat or house in Chelmsley Wood is a wasting asset as a result of the diminishing lease term. Where the lease has, beyond 99 years remaining then this decrease may be of little impact that being said there will become a stage when a lease has under than eighty years unexpired as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the main rational as to why you should extend the lease sooner as opposed to later. Many flat owners in Chelmsley Wood will qualify for this right; nevertheless a conveyancer should be able to confirm whether you are eligible for a lease extension. In certain situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
It is conventional wisdom that a residential leasehold with in excess of one hundred years remaining is worth roughly the same as a freehold. Where an additional 90 years added to any lease with more than 30 years unexpired, the premises will be worth the same as a freehold for decades to come.
| 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Coventry Building Society | 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Engaging our service will provide you increased control over the value of your Chelmsley Wood leasehold, as your property will be more valuable and saleable in terms of lease length should you decide to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
In 2014 Samuel, came very near to the eighty-year mark with the lease on his ground floor apartment in Chelmsley Wood. Having bought his home two decades ago, the unexpired term was of no concern. by good luck, he noticed he would imminently be paying way over the odds for a lease extension. Samuel was able to extend his lease just under the wire in March. Samuel and the landlord who owned the flat above subsequently agreed on a premium of £5,000 . If the lease had descended to less than 80 years, the amount would have become more exhorbitant by at least £925.
Mrs Isabelle Clarke took over the lease of a purpose-built flat in Chelmsley Wood in March 1998. We are asked if we could approximate the premium could be for a ninety year extension to my lease. Similar flats in Chelmsley Wood with a long lease were valued around £208,200. The mid-range ground rent payable was £65 billed per annum. The lease ran out in 2087. Having 61 years as a residual term we approximated the premium to the landlord to extend the lease to be within £20,000 and £23,000 not including expenses.
Mr and Mrs. O Howard was assigned a lease of a studio apartment in Chelmsley Wood in October 1998. The dilemma was if we could estimate the compensation to the landlord could be to prolong the lease by 90 years. Comparative homes in Chelmsley Wood with an extended lease were worth £260,000. The average ground rent payable was £50 invoiced monthly. The lease came to a finish on 16 August 2098. Given that there were 72 years unexpired we calculated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 plus expenses.