When it comes to residential leasehold premises in Chislehurst, you are actually buying a right to reside in a property for a prescribed time frame. In recent years flat leases typically tend to be for 99 years or 125. Many leasehold owners become complacent as this seems like a lengthy period of time, you may consider extending the lease sooner rather than later. The general rule is that the shorter the number of years is the cost of extending the lease gets disproportionately greater particularly once there are less than eighty years left. Residents in Chislehurst with a lease nearing 81 years remaining should seriously consider extending it without delay. When the lease term has below eighty years remaining, under the relevant legislation the landlord is entitled to calculate and levy a greater amount, based on a technical multiplication, known as “marriage value” which is due.
It is generally accepted that a residential leasehold with more than one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the premises will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Regardless of whether you are a tenant or a freeholder in Chislehurst,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 in-depth market knowledge and the close ties they enjoy with Chislehurst valuers.
Last year Riley, came critically close to the 80-year mark with the lease on his purpose- built flat in Chislehurst. In buying his property two decades ago, the length of the lease was of minimal significance. Luckily, he became aware that he would imminently be paying way over the odds for a lease extension. Riley was able to extend his lease just under the wire last April. Riley and the freeholder via the management company ultimately settled on the final figure of £5,500 . If the lease had descended lower than 80 years, the sum would have become more exhorbitant by a minimum £1,050.
Last September we were contacted by Ms Jodie Clark , who bought a one bedroom apartment in Chislehurst in March 2004. The dilemma was if we could estimate the compensation to the landlord would likely be to prolong the lease by 90 years. Comparable properties in Chislehurst with 100 year plus lease were worth £233,200. The average amount of ground rent was £60 billed quarterly. The lease concluded in 2085. Given that there were 61 years remaining we calculated the compensation to the landlord to extend the lease to be between £22,800 and £26,400 not including legals.
An example of a Lease Extension matter before the tribunal for a Chislehurst residence is 70 Andace Park Gardens 133-149 Widmore Road in November 2013. Tribunal determined that the premium payable for the lease extension was £10,052 This case was in relation to 1 flat. The unexpired residue of the current lease was 72 years.