Chafford Hundred leases on domestic properties are gradually losing value. Where your lease has about ninety years remaining, you should start thinking about a lease extension. Eighty years is a significant number: when the unexpired term of a lease drops below this level then you begin paying an additional element called marriage value. Flat owners in Chafford Hundred will mostly qualify for a lease extension; however a solicitor should be able check if you qualify. In some situations you may not qualify. There are prescribed timetables and procedures to comply with once the process has commenced so it’s wise to be guided by a conveyancing solicitor during the process.
Leasehold premises in Chafford Hundred with more than one hundred years outstanding on the lease are sometimes 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 freehold unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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; |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Chafford Hundred can be a difficult process. We recommend you procure guidance from a conveyancer and surveyor with experience in this area.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge procuring Chafford Hundred lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
After protracted correspondence with the freeholder of her purpose-built apartment in Chafford Hundred, Ellen commenced the lease extension process as the eighty year threshold was fast advancing. The transaction was concluded in September 2007. The landlord’s costs were kept to an absolute minimum.
In 2012 we were phoned by Dr Abigail King who, having took over the lease of a basement apartment in Chafford Hundred in April 1995. The question was if we could approximate the premium could be for a ninety year extension to my lease. Comparative premises in Chafford Hundred with an extended lease were valued about £300,000. The mid-range amount of ground rent was £50 invoiced per annum. The lease elapsed in 2100. Having 75 years unexpired we approximated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 exclusive of fees.
An example of a Lease Extension matter before the tribunal for a Chafford Hundred property is Various @ Colombus Square in January 2012. the Tribunal calculated the premiums to be paid for new leases for each of the flats in Mariners Walk to be £3822 and the premium to be paid for the new lease of 2 Knights Court to be £4439. This case affected 13 flats. The unexpired term was 76 years.