When it comes to long leasehold property in Chalfont St Giles, you are actually buying an entitlement to live in a property for a prescribed time frame. Modern flat leases are usually granted for 99 years or 125. Even though this may appear like a long period of time, you should think about a lease extension sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly particularly once there are fewer than eighty years remaining. Residents in Chalfont St Giles with a lease approaching 81 years unexpired should seriously consider extending it sooner as opposed to later. When a lease has below 80 years remaining, under the current statute the landlord can calculate and demand a larger amount, based on a technical computation, known as “marriage value” which is due.
Leasehold premises in Chalfont St Giles with over 100 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 circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
Regardless of whether you are a tenant or a freeholder in Chalfont St Giles,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Chalfont St Giles valuers.
Sebastian was the the leasehold proprietor of a 2 bedroom apartment in Chalfont St Giles on the market with a lease of a few days over fifty eight years unexpired. Sebastian informally approached his freeholder a well known Bristol-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years on the basis of a new rent at the outset set at £100 per annum and increase every twenty five years thereafter. No ground rent would be payable on a lease extension were Sebastian to invoke his statutory right. Sebastian obtained expert advice and secured satisfactory deal without resorting to tribunal and readily saleable.
In 2013 we were contacted by Mr and Mrs. E Sharif who, having acquired a studio flat in Chalfont St Giles in April 2004. We are asked if we could approximate the price would be for a 90 year extension to my lease. Identical residencies in Chalfont St Giles with 100 year plus lease were worth £191,400. The average amount of ground rent was £55 collected monthly. The lease termination date was on 27 April 2079. Taking into account 54 years remaining we estimated the premium to the landlord for the lease extension to be between £34,200 and £39,600 plus fees.
Dr P González took over the lease of a one bedroom flat in Chalfont St Giles in January 2009. We are asked if we could estimate the price would be to prolong the lease by ninety years. Comparative homes in Chalfont St Giles with a long lease were valued about £295,000. The mid-range amount of ground rent was £45 collected per annum. The lease came to a finish in 2099. Given that there were 74 years remaining we approximated the compensation to the landlord to extend the lease to be between £8,600 and £9,800 exclusive of legals.