The value of Chalfont St Peter leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of extending the lease can increase materialy once the unexpired lease term is less than eighty years
Leasehold residencies in Chalfont St Peter with over 100 years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and maintenance charges warrant 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Coventry Building Society | 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
The conveyancers that we work with procure 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 conveyancer we work with provide it.
Last year Ibrahim, came dangerously near to the eighty-year threshold with the lease on his one bedroom flat in Chalfont St Peter. In buying his home two decades ago, the length of the lease was of minimal concern. Luckily, it dawned on him that he needed to take action soon on a lease extension. Ibrahim extended the lease just ahead of time in April. Ibrahim and the freeholder in the end settled on a premium of £6,000 . If he had missed the deadline, the amount would have increased by at least £1,050.
Mr Alexander Scott acquired a purpose-built apartment in Chalfont St Peter in July 2007. We are asked if we could estimate the premium would be to extend the lease by ninety years. Identical premises in Chalfont St Peter with an extended lease were in the region of £200,000. The mid-range ground rent payable was £50 billed annually. The lease ran out in 2103. Having 77 years remaining we approximated the premium to the landlord for the lease extension to be within £8,600 and £9,800 exclusive of professional charges.
An example of a Lease Extension matter before the tribunal for a Chalfont St Peter premises 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 remaining number of years on the lease was 71 years.