As the the remaining lease term of a Chalfont St Peter residential lease diminished so does its value and therefore the value of your property. Where the residual term has, more than one hundred years remaining then this decrease may be of little impact that being said there will become a point in time when a lease has under than 80 years left as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the main logic behind why you should extend the lease sooner rather than later. Most flat owners in Chalfont St Peter will qualify for this right; nevertheless a lawyer will be able to advise if you are eligible for a lease extension. In limited situations you may not qualify, the most common reason being that you have owned the property for less than two years.
Leasehold properties in Chalfont St Peter with over 100 years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and maintenance charges merit it.
Lender | Requirement |
---|---|
Bank of Scotland | Minimum 70 years from the date of the mortgage. |
Halifax | 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 |
Royal Bank of Scotland | Mortgage term plus 30 years. |
Regardless of whether you are a tenant or a freeholder in Chalfont St Peter,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 Chalfont St Peter valuers.
Trailing unsuccessful discussions with the landlord of her two bedroom apartment in Chalfont St Peter, Chloe initiated the lease extension process just as her lease was nearing the all-important 80-year deadline. The transaction was concluded in June 2012. The landlord’s costs were negotiated to less than 550 pounds.
Mr and Mrs. D David purchased a studio apartment in Chalfont St Peter in July 2005. The dilemma was if we could estimate the premium would likely be to prolong the lease by ninety years. Comparable flats in Chalfont St Peter with an extended lease were valued about £275,000. The mid-range ground rent payable was £65 collected every twelve months. The lease expired in 2093. Having 68 years remaining we calculated the compensation to the landlord to extend the lease to be between £12,400 and £14,200 not including legals.
An example of a Lease Extension decision for a Chalfont St Peter residence 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 affected 3 flats. The unexpired term as at the valuation date was 71 years.