The market value of Chalk Farm leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of extending the lease can increase materialy once the unexpired lease term is below than 80 years
Leasehold residencies in Chalk Farm with in excess of 100 years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Using our service will provide you better control over the value of your Chalk Farm leasehold, as your property will be more valuable and marketable in terms of lease length should you wish to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Two years ago Nathaniel, came very near to the 80-year threshold with the lease on his one bedroom apartment in Chalk Farm. In buying his property twenty years previously, the lease term was of no bearing. As luck would have it, he became aware that he needed to take action soon on a lease extension. Nathaniel extended the lease at the eleventh hour last July. Nathaniel and the landlord eventually agreed on the final figure of £5,000 . If the lease had gone to less than eighty years, the premium would have escalated by at least £950.
Mr and Mrs. O Richardson was assigned a lease of a garden apartment in Chalk Farm in March 1996. The question was if we could approximate the compensation to the landlord would be for a ninety year extension to my lease. Similar flats in Chalk Farm with 100 year plus lease were worth £250,400. The average ground rent payable was £65 collected per annum. The lease concluded in 2090. Considering the 64 years left we calculated the premium to the landlord for the lease extension to be between £19,000 and £22,000 plus professional charges.
An example of a Lease Extension decision for a Chalk Farm property 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 number of years remaining on the existing lease(s) was 64.77 years.