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 the lease gets more expensive. It is the case that most Chalk Farm tenants have the right to extend their lease by an additional 90 years under the 1993 Leasehold Reform Act. If you are a leasehold owner in Chalk Farm you should see if your lease has between 70 and ninety years remaining. There are good reasons why a Chalk Farm flat owner with a lease having around eighty years remaining should take steps to ensure that a lease extension is effected without delay
Leasehold residencies in Chalk Farm with more than one hundred years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and estate charges warrant it.
| 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Retaining our service will provide you better control over the value of your Chalk Farm leasehold, as your property will be more valuable and saleable in respect of lease length should you want to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
During the course of the last few months Luca, started to get near to the eighty-year threshold with the lease on his two bedroom flat in Chalk Farm. Having purchased his home 19 years ago, the lease term was of minimal interest. As luck would have it, it dawned on him that he would soon be paying an inflated amount for Extending the lease. Luca arranged for a lease extension just under the wire in March. Luca and the landlord who owned the flat above in the end settled on an amount of £6,000 . If he not met the deadline, the price would have gone up by at least £975.
Ms Ashleigh Bertrand was assigned a lease of a first floor apartment in Chalk Farm in September 1995. We are asked if we could shed any light on how much (roughly) price could be for a ninety year lease extension. Identical flats in Chalk Farm with 100 year plus lease were worth £235,600. The average amount of ground rent was £60 invoiced every twelve months. The lease elapsed on 20 September 2088. Considering the 62 years left we calculated the compensation to the landlord for the lease extension to be between £21,900 and £25,200 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 affected 1 flat. The unexpired residue of the current lease was 64.77 years.