There is no doubt about it a leasehold flat or house in Chalfont St Giles is a wasting asset as a result of the shortening lease. Where the lease has, in excess of 99 years remaining then this decrease may be of little impact however there will become a point in time when a lease has less than eighty years remaining 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 main logic behind why you should consider extending sooner as opposed to later. Most flat owners in Chalfont St Giles will meet the qualifying criteria; 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 frequent reason being that you have owned the property for less than two years.
It is generally accepted that a residential leasehold with over 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an further 90 years added to any lease with more than 30 years remaining, the premises will be worth the same as a freehold for many years ahead.
| 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; |
| 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. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Engaging our service gives you enhanced control over the value of your Chalfont St Giles leasehold, as your property will be more valuable and marketable in terms of lease length should you want to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Half a year ago Charlie, came precariously close to the eighty-year mark with the lease on his leasehold apartment in Chalfont St Giles. In buying his home two decades ago, the lease term was of no relevance. Fortunately, it dawned on him that he would soon be paying way over the odds for Extending the lease. Charlie was able to extend his lease just in the nick of time last April. Charlie and the freeholder via the managing agents subsequently agreed on the final figure of £5,000 . If he had missed the deadline, the price would have increased by at least £1,150.
Last Winter we were contacted by Ms Zoe Alexander , who acquired a basement flat in Chalfont St Giles in September 1996. We are asked if we could approximate the price would be for a ninety year extension to my lease. Comparable properties in Chalfont St Giles with a long lease were valued around £216,000. The mid-range amount of ground rent was £60 invoiced monthly. The lease end date was in 2083. Taking into account 58 years remaining we calculated the premium to the landlord to extend the lease to be between £28,500 and £33,000 plus expenses.
In 2012 we were called by Mr and Mrs. O Walker who, having owned a ground floor flat in Chalfont St Giles in October 1996. We are asked if we could shed any light on how much (approximately) premium could be for a 90 year lease extension. Identical flats in Chalfont St Giles with a long lease were worth £200,000. The average amount of ground rent was £50 billed per annum. The lease termination date was in 2103. Considering the 78 years unexpired we estimated the compensation to the landlord for the lease extension to be between £8,600 and £9,800 not including fees.