It’s a harsh truth that a Chislehurst residential lease is a wasting asset. As the lease term reduces so does the value of the property. The extent of this is taken for granted in the first few years due to the deflation being disguised by increases in the Chislehurst property prices.Once your lease nears 85ish years, you should start considering a lease extension. If lease term dips below 80 years, you will end up paying half of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. The marriage fee is the amount of additional value that a lease extension will add the property Most flat owners in Chislehurst will be able to extend under the legislation; however a lawyer will be able to confirm whether you are eligibility. In some cases you may not be entitled. There are also strict deadlines and procedures to be adhered to once the process is instigated and you will need to be guided by your lawyer for the duration of the process.
Leasehold properties in Chislehurst with more than one hundred years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and estate charges warrant it.
| 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
| 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 |
Using our service will provide you enhanced control over the value of your Chislehurst leasehold, as your property will be more valuable and marketable in respect of lease length should you want to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
After unsuccessful negotiations with the freeholder of her purpose-built flat in Chislehurst, Emily started the lease extension process as the eighty year threshold was quickly coming. The transaction completed in July 2006. The landlord’s charges were negotiated to under five hundred pounds.
In 2013 we were contacted by Dr C Evans who, having owned a studio flat in Chislehurst in March 2007. We are asked if we could approximate the compensation to the landlord would be for a 90 year extension to my lease. Comparative premises in Chislehurst with an extended lease were worth £205,000. The average ground rent payable was £50 collected annually. The lease concluded in 2105. Having 79 years remaining we approximated the premium to the freeholder to extend the lease to be within £8,600 and £9,800 exclusive of professional charges.
An example of a Lease Extension decision 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 number of years remaining on the existing lease(s) was 72 years.