Chalfont St Peter residential property held on a long lease is a wasting asset as the leaseholder only owns the property for a period of years.
Leasehold residencies in Chalfont St Peter with in excess of one hundred years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance charges justify 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
The conveyancers that we work with undertake Chalfont St Peter lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
Last year Nathan, came dangerously close to the 80-year threshold with the lease on his ground floor flat in Chalfont St Peter. In buying his home two decades ago, the unexpired term was of no concern. As luck would have it, he noticed he needed to take steps soon on Extending the lease. Nathan was able to extend his lease at the eleventh hour last January. Nathan and the landlord ultimately settled on the final figure of £6,000 . If the lease had gone lower than eighty years, the amount would have escalated by a minimum £850.
Last year we were phoned by Ms H Lefebvre , who purchased a recently refurbished flat in Chalfont St Peter in July 2009. The dilemma was if we could approximate the price could be for a 90 year extension to my lease. Similar premises in Chalfont St Peter with an extended lease were valued around £260,200. The average amount of ground rent was £65 billed quarterly. The lease termination date was on 7 August 2091. Taking into account 66 years unexpired we estimated the premium to the landlord for the lease extension to be within £16,200 and £18,600 exclusive of fees.
An example of a Lease Extension matter before the tribunal for a Chalfont St Peter property is Flats 8, 11 and 15 Craigmore Court 46 Murray Road in December 2013. The tribunal held that the price payable by the Applicant tenant of Flat 8 to acquire an extended lease shall be £26,438 plus £1 to the intermediate lessee . The tribunal held that the price payable by the Applicant tenants of Flat 11 to acquire an extended lease shall be £26,791 plus £1 to the intermediate lessee. The tribunal held that the price payable by the Applicant tenant of Flat 15 to acquire an extended lease shall be £26,638 plus £1 to the intermediate lessee . This case related to 3 flats. The number of years remaining on the existing lease(s) was 71 years.