The basic rule is, all other factors being equal, the shorter the lease the more expensive the premium. Qualifying leaseholders in Chalk Farm may extend the lease for a further 90 years in accordance with the 1993 Leasehold Reform Act. Please give careful consideration before delaying your Chalk Farm lease extension. Postponing that expense now simply increases the price you will ultimately have to pay to extend the lease.
Leasehold properties in Chalk Farm with over 100 years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and service charges merit 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. |
| 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. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The conveyancers that we work with handle 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 conveyancer we work with provide it.
In 2014 Thomas, came critically near to the eighty-year mark with the lease on his purpose- built flat in Chalk Farm. Having bought his property two decades ago, the lease term was of no significance. Luckily, it dawned on him that he would soon be paying an inflated amount for a lease extension. Thomas extended the lease at the eleventh hour last September. Thomas and the freeholder via the managing agents ultimately settled on the final figure of £6,000 . If he failed to meet the deadline, the figure would have increased by at least £1,100.
Last Autumn we were phoned by Mr Michael Khan , who moved into a garden flat in Chalk Farm in July 2012. The question was if we could estimate the compensation to the landlord would be for a ninety year lease extension. Comparative flats in Chalk Farm with a long lease were worth £171,800. The mid-range amount of ground rent was £55 collected quarterly. The lease lapsed in 2075. Given that there were 50 years remaining we approximated the premium to the landlord for the lease extension to be between £33,300 and £38,400 exclusive of expenses.
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.