Owning a apartment usually means owning a lease of the property, which has a finite term of years. The lease will usually be granted for a set period of time , ordinarily 99 or 125 years, although we have seen longer and shorter terms in Chatteris. Clearly, the period of lease remaining shortens over time. This may pass by relatively unnoticed when the flat or house needs to be sold or re-mortgaged. The fewer the years remaining the lower the value of the property and the more it will cost to extend the lease. Eligible long lease owners in Chatteris have the right to extend the lease for an additional 90 years in accordance with legislation. Do give careful attention before delaying your Chatteris lease extension. Putting off that expense now simply increases the price you will eventually have to pay to extend your lease
Leasehold residencies in Chatteris with in excess of 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 upside in purchasing the freehold unless savings on ground rent and estate charges justify 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; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| 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 |
| 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 will provide you enhanced control over the value of your Chatteris leasehold, as your property will be more valuable and saleable in relation to the lease length should you decide to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
George owned a 2 bedroom apartment in Chatteris on the market with a lease of a few days over sixty years unexpired. George on an informal basis approached his freeholder a well known local-based freehold company and enquired on a premium to extend the lease. The landlord was keen to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent to start with set at £150 per annum and increase every 25 years thereafter. No ground rent would be payable on a lease extension were George to invoke his statutory right. George obtained expert legal guidance and was able to make a more informed decision and handle with the matter and sell the property.
Ms W Bertrand owned a one bedroom apartment in Chatteris in August 2011. We are asked if we could shed any light on how much (approximately) premium would be for a 90 year extension to my lease. Comparable flats in Chatteris with 100 year plus lease were worth £233,200. The mid-range amount of ground rent was £60 billed monthly. The lease expired on 25 January 2086. Having 61 years left we approximated the compensation to the freeholder for the lease extension to be within £22,800 and £26,400 exclusive of legals.
Dr L Allen completed a garden apartment in Chatteris in May 2009. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be for a 90 year lease extension. Identical flats in Chatteris with a long lease were worth £171,800. The average amount of ground rent was £55 collected every twelve months. The lease lapsed in 2075. Considering the 50 years unexpired we estimated the premium to the freeholder to extend the lease to be within £33,300 and £38,400 exclusive of fees.