Chalfont St Giles leases on residential deteriorating in value. Where your lease has about 90 years left, you should start thinking about a lease extension. Eighty years is a significant number: when the remaining term of a lease falls below this level then you begin paying an additional element called marriage value. Leasehold owners in Chalfont St Giles will mostly be legally entitled to a lease extension; however It would be wise to check with a conveyancer to check if you qualify. In some situations you may not qualify. There are also strict deadlines and procedures to comply with once the process has commenced so it’s prudent to be guided by a conveyancer during the process.
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 value the same as a freehold interest in your home. In such situations there is often little upside in buying 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 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; |
| 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
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 marketable in terms of 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.
Last Christmas Jason, started to get near to the eighty-year threshold with the lease on his basement apartment in Chalfont St Giles. Having purchased his home two decades ago, the unexpired term was of minimal concern. Luckily, he became aware that he would imminently be paying an inflated amount for Extending the lease. Jason arranged for a lease extension just under the wire in June. Jason and the freeholder in the end agreed on sum of £6,000 . If the lease had slipped lower than 80 years, the figure would have escalated by a minimum £1,025.
Last Summer we were phoned by Dr C Cox , who bought a ground floor flat in Chalfont St Giles in October 1996. The dilemma was if we could approximate the premium would be to prolong the lease by 90 years. Identical homes in Chalfont St Giles with 100 year plus lease were valued about £235,600. The mid-range ground rent payable was £60 billed annually. The lease elapsed in 2087. Given that there were 62 years remaining we calculated the premium to the freeholder to extend the lease to be between £21,900 and £25,200 plus expenses.
In 2011 we were called by Mr and Mrs. G Murphy who, having bought a first floor flat in Chalfont St Giles in September 2001. We are asked if we could shed any light on how much (approximately) premium would be for a 90 year lease extension. Comparative properties in Chalfont St Giles with 100 year plus lease were in the region of £174,200. The mid-range ground rent payable was £55 billed every twelve months. The lease elapsed in 2076. Considering the 51 years outstanding we estimated the compensation to the landlord for the lease extension to be between £31,400 and £36,200 not including legals.