The nearer a residential lease in Chalk Farm nears to zero years unexpired, the more it reduces the value of the property. Where the lease has, beyond 99 years to run then this decrease may be negligible that being said there will become a point in time when a lease has under than 80 years remaining as part of the premium you will incur is what is termed as a marriage value. This could increase markedly the cost. It is the primary reason why you should consider extending sooner rather than later. The majority of flat owners in Chalk Farm will meet the qualifying criteria; that being said a lawyer can advise if you qualify for a lease extension. In limited situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
It is conventional wisdom that a property with more than one hundred years unexpired lease term is worth approximately the same as a freehold. Where an further 90 years added to any lease with more than 30 years left, the residence will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The lawyers that we work with undertake Chalk Farm lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
Henry owned a high value apartment in Chalk Farm on the market with a lease of a little over fifty eight years remaining. Henry on an informal basis spoke with his freeholder a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £50 annually. Ordinarily, ground rent would not be payable on a lease extension were Henry to exercise his statutory right. Henry obtained expert legal guidance and secured satisfactory resolution informally and sell the property.
In 2009 we were contacted by Mr and Mrs. V Taylor who, having was assigned a lease of a recently refurbished flat in Chalk Farm in November 2009. We are asked if we could shed any light on how much (roughly) premium would likely be to extend the lease by an additional years. Comparative properties in Chalk Farm with 100 year plus lease were valued about £225,800. The average ground rent payable was £60 collected annually. The lease came to a finish on 10 August 2086. Taking into account 60 years outstanding we estimated the premium to the landlord to extend the lease to be within £25,700 and £29,600 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 affected 1 flat. The unexpired term as at the valuation date was 64.77 years.