Chalk Farm leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease becomes more expensive. Most owners of residential leasehold property in Chalk Farm enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Chalk Farm you would be well advised to see if your lease has between seventy and ninety years left. In particular once the remaining lease term slips under 80 years, the premium due on any lease extension sharply increases as an element of the premium you pay is what is known as a marriage value
It is conventional wisdom that a property with more than one hundred years unexpired lease term is worth roughly the same as a freehold. Where an additional 90 years added to any lease with more than 45 years left, the residence will be worth the same as a freehold for many years in the future.
| 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Chalk Farm can be a difficult process. We recommend you secure professional help from a conveyancer and valuer with experience in this area.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge dealing with Chalk Farm lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last year Ryan, started to get near to the eighty-year threshold with the lease on his first floor flat in Chalk Farm. Having purchased his flat 19 years ago, the length of the lease was of little importance. As luck would have it, it dawned on him that he needed to take steps soon on Extending the lease. Ryan extended the lease just under the wire last January. Ryan and the freeholder via the management company subsequently agreed on the final figure of £5,000 . If he failed to meet the deadline, the amount would have become more exhorbitant by a minimum £1,075.
In 2011 we were phoned by Dr Madeleine Khan who, having completed a recently refurbished flat in Chalk Farm in May 2003. We are asked if we could shed any light on how much (roughly) compensation to the landlord would likely be to extend the lease by an additional years. Comparative premises in Chalk Farm with 100 year plus lease were valued around £280,000. The mid-range amount of ground rent was £45 billed per annum. The lease finished on 20 May 2096. Considering the 70 years unexpired we approximated the premium to the landlord for the lease extension to be between £12,400 and £14,200 exclusive of legals.
An example of a Lease Extension case for a Chalk Farm premises is Flat 2 27 Mackeson Road in December 2012. The Tribunal assessed the value of the lease extension premium at £35,435 and rounded the figure to £35,500 This case affected 1 flat. The unexpired lease term was 64.77 years.