When it comes to long leasehold premises in Chalfont St Giles, you are in fact renting it for a certain period of time. These days flat leases are usually granted for 99 years or 125. Even though this may appear like a long period of time, you may think about a lease extension sooner rather than later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly particularly once there are less than eighty years remaining. Leasehold owners in Chalfont St Giles with a lease nearing 81 years unexpired should seriously consider extending it without delay. Once the lease term has fewer than 80 years remaining, under the current Act the landlord is entitled to calculate and demand a greater premium, based on a technical calculation, known as “marriage value” which is payable.
Leasehold premises in Chalfont St Giles with over one hundred years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in buying the freehold unless savings on ground rent and maintenance charges merit it.
| 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. |
| 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; |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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. |
Engaging our service gives you increased 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 decide 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.
Last Autumn Alexander, started to get near to the eighty-year mark with the lease on his first floor flat in Chalfont St Giles. Having bought his property 19 years previously, the length of the lease was of minimal bearing. by good luck, he recognised he needed to take action soon on a lease extension. Alexander was able to extend his lease just under the wire last June. Alexander and the freeholder via the management company in the end agreed on a premium of £6,000 . If he failed to meet the deadline, the premium would have gone up by at least £925.
Mr and Mrs. N Lambert took over the lease of a studio flat in Chalfont St Giles in April 2010. We are asked if we could estimate the price could be for a ninety year extension to my lease. Comparable residencies in Chalfont St Giles with a long lease were in the region of £285,000. The average ground rent payable was £45 invoiced monthly. The lease concluded in 2097. Given that there were 71 years left we approximated the premium to the landlord for the lease extension to be between £12,400 and £14,200 plus expenses.
Mr and Mrs. H Torres was assigned a lease of a one bedroom apartment in Chalfont St Giles in January 2000. We are asked if we could approximate the price would be for a ninety year extension to my lease. Similar properties in Chalfont St Giles with a long lease were worth £225,800. The mid-range ground rent payable was £60 invoiced per annum. The lease came to a finish in 2086. Given that there were 60 years remaining we estimated the premium to the landlord to extend the lease to be between £23,800 and £27,400 exclusive of fees.