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Top reasons for Chalk Farm lease extension


Top reasons for lease extension now:

Increase your lease and increase your Chalk Farm property value

Chalk Farm leases on residential properties are gradually decreasing in 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. The majority of owners of residential leasehold property in Chalk Farm enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Chalk Farm you really ought to see if your lease has between seventy and 90 years left. There are good reasons why a Chalk Farm leaseholder with a lease having around 80 years unexpired should take action to make sure that a lease extension is effected without delay

Chalk Farm property with a lease extension has roughly the same value as a freehold

It is generally considered that a property with over one hundred years remaining is worth approximately the same as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be worth the same as a freehold for many years in the future.

Lending institutions will not finance a property with a short lease

Mortgage Lenders vary in their lending requirements. Some draw the line at seventy five years left on the lease; others may be prepared to lend with anything in excess 70 years. With less than 60 years, it may be challenging to get a mortgage in the first place.

Lender Requirement
Bank of Scotland Minimum 70 years from the date of the mortgage.
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.
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.
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.
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.

What makes us experts in Chalk Farm lease extensions?

Regardless of whether you are a tenant or a landlord in Chalk Farm,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 experience and the close ties they enjoy with Chalk Farm valuers.

Chalk Farm Lease Extension Example Cases:

Finley, Chalk Farm, North London,

Finley was the the leasehold owner of a high value apartment in Chalk Farm being marketed with a lease of fraction over fifty eight years left. Finley on an informal basis spoke with his freeholder being a well known local-based freehold company and enquired on a premium to extend the lease. The landlord was keen to give an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent at the outset set at £100 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Finley to invoke his statutory right. Finley procured expert legal guidance and secured an acceptable resolution informally and sell the flat.

Chalk Farm case:

Dr Lewis Hill acquired a ground floor apartment in Chalk Farm in August 1997. We are asked if we could estimate the compensation to the landlord would likely be to extend the lease by an additional years. Identical premises in Chalk Farm with 100 year plus lease were worth £205,000. The average amount of ground rent was £50 billed per annum. The lease came to a finish in 2103. Taking into account 79 years as a residual term we calculated the premium to the landlord for the lease extension to be between £8,600 and £9,800 not including costs.

Decision in Camden

An example of a Lease Extension matter before the tribunal for a Chalk Farm flat 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 related to 1 flat. The unexpired lease term was 64.77 years.