Unfortunately that a Chalfont St Giles residential lease is a deteriorating asset. The lease value reduces in proportion to its lease length. The extent of this is taken for granted in the early years due to the reduction being disguised by increases in the Chalfont St Giles property market.Once your lease gets to 85ish years, you need to start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease slips lower than 80 years - otherwise a higher premium will be payable. The majority of flat owners in Chalfont St Giles will be able to extend under the legislation; however a conveyancing solicitor will be able to confirm if you qualify for an extension. In some situations you may not qualify. There are also strict timetables and procedures to follow once the process has commenced and you will need to be guided by your conveyancing solicitor for the duration of the formalities.
Leasehold properties in Chalfont St Giles with more than one hundred years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Using our service will provide you increased control over the value of your Chalfont St Giles leasehold, as your property will be more valuable and saleable in relation to the 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.
Elijah was the the leasehold proprietor of a studio apartment in Chalfont St Giles being sold with a lease of a little over 72 years left. Elijah informally approached his freeholder being a well known Manchester-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years subject to a rise in the rent to £100 per annum. Ordinarily, ground rent would not be due on a lease extension were Elijah to exercise his statutory right. Elijah procured expert advice and secured an acceptable deal without going to tribunal and sell the flat.
Last year we were e-mailed by Dr Blake Thomas , who acquired a purpose-built apartment in Chalfont St Giles in May 2001. We are asked if we could approximate the compensation to the landlord could be for a 90 year lease extension. Identical flats in Chalfont St Giles with a long lease were in the region of £218,400. The average ground rent payable was £60 collected yearly. The lease came to a finish in 2085. Taking into account 59 years remaining we approximated the premium to the freeholder to extend the lease to be within £27,600 and £31,800 not including costs.
In 2012 we were e-mailed by Mr and Mrs. G Garcia who, having acquired a newly refurbished apartment in Chalfont St Giles in April 2002. The question was if we could shed any light on how much (roughly) premium would be to prolong the lease by an additional years. Identical properties in Chalfont St Giles with a long lease were worth £205,000. The mid-range ground rent payable was £50 billed every twelve months. The lease expired on 6 September 2105. Considering the 79 years remaining we estimated the premium to the landlord to extend the lease to be within £8,600 and £9,800 exclusive of professional charges.