The nearer a residential lease in Chalk Farm nears to zero years unexpired, the the greater the reduction in the value of the property. Where the lease has, over 99 years remaining then this decrease may be negligible that being said there will become a point in time when a lease has less than eighty years unexpired as part of the premium you will incur is what is known as a marriage value. This could increase sharply the cost. It is the main rational as to why you should extend the lease without delay. The majority of flat owners in Chalk Farm will meet the qualifying criteria; nevertheless a conveyancing solicitor will be able to confirm if you qualify for a lease extension. In certain situations you may not qualify, the most frequent reason being that you have owned the property for less than two years.
It is conventional wisdom that a residential leasehold with over 100 years remaining is worth approximately the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be equivalent in value to a freehold for decades to come.
| 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
Engaging our service gives you increased 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.
Last year Connor, came seriously close to the eighty-year threshold with the lease on his studio apartment in Chalk Farm. In buying his flat 18 years previously, the lease term was of no significance. Luckily, he noticed he would soon be paying an inflated amount for Extending the lease. Connor was able to extend his lease just under the wire last September. Connor and the landlord who owned the flat above eventually settled on an amount of £6,000 . If the lease had fallen below 80 years, the amount would have escalated by a minimum £850.
Mrs Hollie Girard purchased a garden apartment in Chalk Farm in November 2010. We are asked if we could approximate the premium could be to extend the lease by a further 90 years. Identical properties in Chalk Farm with a long lease were worth £205,000. The average amount of ground rent was £50 collected every twelve months. The lease terminated on 25 September 2103. Considering the 78 years remaining we approximated the premium to the freeholder for the lease extension to be between £7,600 and £8,800 plus fees.
An example of a Lease Extension case 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 was in relation to 1 flat. The unexpired lease term was 64.77 years.