Unfortunately that a Chalfont St Peter residential lease is a wasting asset. As the lease term reduces so does the value of the property. The extent of this is taken for granted in the early years due to the depreciation being disguised by increases in the Chalfont St Peter property prices.Where your lease has approximately 90 years left, you need to start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease dips under 80 years - otherwise a higher premium will be due. The majority of flat owners in Chalfont St Peter will be able to extend under the legislation; however a conveyancing solicitor will be able to confirm whether you qualify for an extension. In some cases you may not be entitled. There are also strict timeframes and procedures to follow once the process has commenced and you will need to be guided by your conveyancing solicitor throughout the process.
It is generally considered that a residential leasehold with more than 100 years remaining is worth roughly the equivalent as a freehold. Where an additional ninety years added to any lease with more than 35 years unexpired, the residence will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Godiva Mortgages | 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
Irrespective of whether you are a tenant or a freeholder in Chalfont St Peter,the lease extension solicitors 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.
In 2014 Liam, came precariously near to the eighty-year threshold with the lease on his two bedroom flat in Chalfont St Peter. Having purchased his flat 18 years ago, the unexpired term was of minimal bearing. by good luck, he recognised he would imminently be paying way over the odds for Extending the lease. Liam was able to extend his lease just ahead of time in May. Liam and the freeholder via the managing agents in the end settled on a premium of £6,000 . If he not met the deadline, the price would have become more exhorbitant by at least £975.
In 2014 we were e-mailed by Dr Toby King who, having owned a one bedroom flat in Chalfont St Peter in October 1995. We are asked if we could approximate the compensation to the landlord would be to prolong the lease by an additional years. Similar residencies in Chalfont St Peter with 100 year plus lease were valued around £216,000. The average ground rent payable was £60 billed per annum. The lease lapsed on 24 September 2083. Having 58 years as a residual term we estimated the premium to the landlord for the lease extension to be within £28,500 and £33,000 plus legals.
An example of a Lease Extension matter before the tribunal 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.