Unfortunately that a Chalfont St Giles residential lease is a deteriorating asset. As the lease term reduces so does the value of the property. The extent of this is not fully appreciated 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 should 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 dips lower than 80 years - otherwise a higher premium will be due. 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 whether you qualify for an extension. In some situations you may not be entitled. There are also strict timeframes and procedures to follow once the process is initiated and you will need to be guided by your conveyancer for the duration of the process.
It is generally accepted that a property with in excess of 100 years remaining is worth approximately the equivalent as a freehold. Where an further 90 years added to any lease with more than 35 years left, the property 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. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Regardless of whether you are a tenant or a freeholder in Chalfont St Giles,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Chalfont St Giles valuers.
Oliver was the the leasehold owner of a high value flat in Chalfont St Giles being sold with a lease of a little over 59 years left. Oliver informally contacted his freeholder being a well known London-based freehold company and enquired on a premium to extend the lease. The landlord was keen to give an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £100 per annum. No ground rent would be due on a lease extension were Oliver to exercise his statutory right. Oliver procured expert legal guidance and was able to make a more informed judgement and handle with the matter and readily saleable.
In 2010 we were approached by Mr and Mrs. U Harris who, having was assigned a lease of a basement apartment in Chalfont St Giles in April 2011. The dilemma was if we could approximate the price would likely be for a ninety year lease extension. Comparative homes in Chalfont St Giles with 100 year plus lease were in the region of £295,000. The mid-range ground rent payable was £50 invoiced every twelve months. The lease expired in 2101. Having 75 years remaining we approximated the compensation to the landlord to extend the lease to be between £8,600 and £9,800 exclusive of professional charges.
In 2014 we were e-mailed by Mr and Mrs. O Roux who, having completed a first floor flat in Chalfont St Giles in February 2006. We are asked if we could approximate the premium could be to prolong the lease by an additional years. Comparative premises in Chalfont St Giles with 100 year plus lease were in the region of £250,400. The average ground rent payable was £65 collected yearly. The lease concluded in 2090. Having 64 years unexpired we approximated the premium to the landlord to extend the lease to be within £19,000 and £22,000 not including legals.