Chafford Hundred residential property owned on a long lease is a wasting asset as the leaseholder only owns the property for a set term.
It is conventional wisdom that a residential leasehold with more than one hundred years remaining is worth approximately the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the property will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Chelsea 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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 landlord in Chafford Hundred,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Chafford Hundred valuers.
In 2014 Luca, started to get near to the eighty-year mark with the lease on his purpose- built apartment in Chafford Hundred. Having bought his flat two decades ago, the length of the lease was of minimal relevance. Fortunately, it dawned on him that he would imminently be paying an escalated premium for Extending the lease. Luca was able to extend his lease at the eleventh hour in August. Luca and the landlord eventually agreed on the final figure of £5,000 . If the lease had gone below eighty years, the amount would have escalated by a minimum £1,050.
Mr Y Harris moved into a one bedroom flat in Chafford Hundred in July 1998. The question was if we could shed any light on how much (roughly) price would likely be for a 90 year extension to my lease. Comparable premises in Chafford Hundred with an extended lease were worth £248,000. The average amount of ground rent was £65 collected yearly. The lease concluded in 2088. Considering the 63 years left we estimated the premium to the landlord for the lease extension to be within £20,900 and £24,200 not including 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 related to 13 flats. The unexpired term was 76 years.