For those whose Chalfont St Peter home is held on a long lease, our message is clear – if nothing is done, the property will eventually revert to your landlord, leaving you empty-handed. The shorter the lease the lower the value of the property and the more expensive it will be to extend the lease.
It is generally accepted that a residential leasehold with in excess of one hundred years remaining is worth approximately the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years ahead.
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a freeholder in Chalfont St Peter,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 in-depth market knowledge and the close ties they enjoy with Chalfont St Peter valuers.
Twenty four months ago Connor, started to get near to the eighty-year threshold with the lease on his studio flat in Chalfont St Peter. In buying his flat 18 years previously, the length of the lease was of no relevance. Fortunately, he realised he would imminently be paying an escalated premium for a lease extension. Connor arranged for a lease extension just ahead of time last June. Connor and the landlord ultimately settled on sum of £5,500 . If the lease had fallen below 80 years, the sum would have escalated by a minimum £1,000.
Last Autumn we were phoned by Mr Y Edwards , who moved into a studio flat in Chalfont St Peter in March 2001. We are asked if we could estimate the premium would likely be for a ninety year extension to my lease. Comparative premises in Chalfont St Peter with 100 year plus lease were worth £250,400. The average amount of ground rent was £65 invoiced yearly. The lease finished in 2090. Having 64 years as a residual term we approximated the compensation to the landlord to extend the lease to be within £19,000 and £22,000 not including professional charges.
An example of a Lease Extension case 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 related to 3 flats. The remaining number of years on the lease was 71 years.