As the the remaining lease term of a Chelmsley Wood domestic lease lessens so does its value and therefore the value of your property. If the residual term has, more than 99 years to run then this decrease may be negligible however there will become a stage when a lease has under than 80 years remaining as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the main reason why you should consider extending sooner as opposed to later. Many flat owners in Chelmsley Wood will meet the qualifying criteria; nevertheless a lawyer can confirm whether you are eligible to extend your lease. In certain situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
Leasehold residencies in Chelmsley Wood with over one hundred years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
Retaining our service gives 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 in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
George owned a high value flat in Chelmsley Wood being marketed with a lease of fraction over fifty eight years unexpired. George informally spoke with his freeholder a well known Bristol-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years on the basis of a new rent at the outset set at £150 per annum and doubled every 25 years thereafter. No ground rent would be due on a lease extension were George to invoke his statutory right. George obtained expert advice and was able to make an informed decision and deal with the matter and ending up with a market value flat.
Last May we were e-mailed by Dr I Anderson , who owned a newly refurbished apartment in Chelmsley Wood in January 2008. We are asked if we could estimate the compensation to the landlord would likely be to extend the lease by an additional years. Comparative properties in Chelmsley Wood with an extended lease were worth £191,000. The average amount of ground rent was £65 collected quarterly. The lease elapsed in 2083. Considering the 58 years left we approximated the premium to the landlord to extend the lease to be between £23,800 and £27,400 not including professional charges.
In 2014 we were e-mailed by Mr and Mrs. S Stewart who, having bought a one bedroom apartment in Chelmsley Wood in October 2000. The dilemma was if we could estimate the price could be for a 90 year lease extension. Identical premises in Chelmsley Wood with an extended lease were worth £250,000. The average amount of ground rent was £50 collected every twelve months. The lease ran out in 2094. Given that there were 69 years unexpired we estimated the premium to the landlord for the lease extension to be within £9,500 and £11,000 exclusive of professional charges.