Chafford Hundred residential property owned on a long lease is a depreciating asset because a leaseholder only owns the property for a period of years.
It is generally accepted that a residential leasehold with more than 100 years remaining is worth approximately the equivalent as a freehold. Where an further ninety years added to any lease with more than 45 years unexpired, the premises will be equivalent in value to 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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 experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Chafford Hundred valuers.
Last year Isaac, came critically near to the 80-year mark with the lease on his garden apartment in Chafford Hundred. In buying his home two decades ago, the length of the lease was of no importance. Thankfully, it dawned on him that he would imminently be paying way over the odds for Extending the lease. Isaac was able to extend his lease just under the wire last May. Isaac and the landlord who owned the flat above in the end agreed on a premium of £5,000 . If the lease had gone lower than eighty years, the price would have become more costly by at least £1,075.
Mr Mason Norbert bought a purpose-built flat in Chafford Hundred in March 2010. We are asked if we could estimate the compensation to the landlord could be for a 90 year lease extension. Identical properties in Chafford Hundred with an extended lease were in the region of £275,000. The mid-range ground rent payable was £65 collected every twelve months. The lease end date was on 4 September 2094. Taking into account 68 years as a residual term we calculated the compensation to the freeholder for the lease extension to be within £12,400 and £14,200 plus fees.
An example of a Lease Extension case for a Chafford Hundred premises 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 was in relation to 13 flats. The remaining number of years on the lease was 76 years.