Chalfont St Giles leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease gets more expensive. It is the case that most Chalfont St Giles tenants have the right to extend their lease by an additional ninety years by virtue of the 1993 Leasehold Reform Act. If you are a leasehold owner in Chalfont St Giles you should investigate if your lease has between seventy and 90 years remaining. There are compelling reasons why a Chalfont St Giles leaseholder with a lease having around eighty years unexpired should take action to make sure that a lease extension is put in place without delay
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 is worth the same as a freehold interest in your premises. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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. |
The conveyancing solicitors that we work with procure Chalfont St Giles lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
Last Autumn Tommy, started to get near to the 80-year mark with the lease on his leasehold apartment in Chalfont St Giles. Having purchased his flat two decades ago, the length of the lease was of minimal relevance. Fortunately, he became aware that he would imminently be paying an escalated premium for Extending the lease. Tommy was able to extend his lease just under the wire last July. Tommy and the freeholder in the end settled on sum of £6,000 . If he had missed the deadline, the figure would have increased by at least £1,125.
Last Spring we were phoned by Mr Lucas Wright , who owned a one bedroom flat in Chalfont St Giles in July 2005. The dilemma was if we could shed any light on how much (roughly) premium would likely be to extend the lease by an additional years. Comparative homes in Chalfont St Giles with a long lease were worth £295,000. The average amount of ground rent was £45 billed yearly. The lease came to a finish on 3 March 2099. Taking into account 74 years left we approximated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 not including costs.
In 2011 we were contacted by Mr and Mrs. D Martin who, having acquired a first floor flat in Chalfont St Giles in February 1999. The dilemma was if we could estimate the compensation to the landlord would likely be for a ninety year lease extension. Comparative premises in Chalfont St Giles with 100 year plus lease were worth £243,000. The mid-range amount of ground rent was £65 collected quarterly. The lease terminated in 2088. Taking into account 63 years unexpired we approximated the premium to the landlord for the lease extension to be within £20,000 and £23,000 plus costs.