Owning a flat usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. This lease will ordinarily be granted for a set period of time , usually 99 or 125 years, although we have seen longer and shorter terms in Chapel Allerton. Inevitably, the length of lease remaining reduces as time goes by. This is often ignored and only becomes a problem when the residence needs to be sold or refinanced. The shorter the lease the lower the value of the property and the more expensive it will be to extend the lease. Qualifying leaseholders in Chapel Allerton have the right to extend the lease for an additional ninety years under Leasehold Reform legislation. Please give due consideration before putting off your Chapel Allerton lease extension. Holding off the cost now likely increases the price you will eventually incur for a lease extension
Leasehold premises in Chapel Allerton with in excess of one hundred years remaining 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 property. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| 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. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
The conveyancers that we work with handle Chapel Allerton 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.
Nathaniel was the the leasehold proprietor of a conversion flat in Chapel Allerton on the market with a lease of fraction over 61 years outstanding. Nathaniel on an informal basis contacted his freeholder a well known London-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent at the outset set at £150 per annum and doubled every twenty five years thereafter. No ground rent would be payable on a lease extension were Nathaniel to exercise his statutory right. Nathaniel obtained expert legal guidance and secured satisfactory resolution without resorting to tribunal and ending up with a market value flat.
Last January we were e-mailed by Dr Jodie Leroy , who took over the lease of a studio flat in Chapel Allerton in April 1998. We are asked if we could estimate the premium could be to prolong the lease by an additional years. Similar homes in Chapel Allerton with 100 year plus lease were valued about £216,000. The mid-range amount of ground rent was £60 invoiced every twelve months. The lease terminated on 1 May 2084. Taking into account 58 years outstanding we approximated the compensation to the landlord to extend the lease to be between £28,500 and £33,000 plus professional charges.
Mr John Martinez completed a one bedroom apartment in Chapel Allerton in April 1997. The dilemma was if we could shed any light on how much (approximately) premium would likely be for a 90 year lease extension. Comparable homes in Chapel Allerton with a long lease were in the region of £200,000. The mid-range amount of ground rent was £50 invoiced every twelve months. The lease finished on 1 August 2104. Given that there were 78 years left we estimated the compensation to the freeholder to extend the lease to be within £8,600 and £9,800 exclusive of fees.