Owning a flat usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. your lease will ordinarily be granted for a fixed period of time , ordinarily 99 or 125 years, although we have come across longer and shorter terms in Chalfont St Giles. Clearly, the period of lease left shortens over time. This is often overlooked and only raises itself as an issue when the property has to be disposed of or re-mortgaged. The shorter the lease the less it is worth and the more it will cost to extend the lease. Qualifying leaseholders in Chalfont St Giles have the right to extend the lease for a further ninety years under statute. Do give due consideration before delaying your Chalfont St Giles lease extension. Putting off that expense now simply increases the price you will ultimately incur to extend your lease
Leasehold premises in Chalfont St Giles with over 100 years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate 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; |
| 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. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| 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. |
Using our service will provide you enhanced 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.
In 2014 Jayden, started to get near to the eighty-year mark with the lease on his first floor flat in Chalfont St Giles. In buying his flat 19 years ago, the length of the lease was of minimal concern. As luck would have it, he recognised he needed to take action soon on a lease extension. Jayden was able to extend his lease just under the wire last June. Jayden and the freeholder in the end agreed on sum of £6,000 . If he failed to meet the deadline, the figure would have become more exhorbitant by a minimum £1,050.
Dr Y Pérez moved into a ground floor flat in Chalfont St Giles in October 2006. We are asked if we could estimate the price could be for a ninety year extension to my lease. Comparable flats in Chalfont St Giles with a long lease were worth £198,800. The average ground rent payable was £55 collected yearly. The lease terminated in 2081. Taking into account 55 years outstanding we calculated the compensation to the freeholder for the lease extension to be between £33,300 and £38,400 not including costs.
Last Summer we were approach by Mr and Mrs. V Thomas , who moved into a garden flat in Chalfont St Giles in March 1997. The dilemma was if we could estimate the price could be for a 90 year lease extension. Comparative residencies in Chalfont St Giles with an extended lease were valued about £295,000. The mid-range amount of ground rent was £50 collected quarterly. The lease concluded on 11 July 2101. Having 75 years remaining we calculated the premium to the landlord to extend the lease to be between £8,600 and £9,800 exclusive of expenses.