As the length of the unexpired term of a Charterhouse domestic lease diminished so does its value and therefore the value of your property. If the lease has, more than 100 years remaining then this decrease may be fractional nevertheless there will become a stage when a lease has fewer than 80 years unexpired 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 without delay. Many flat owners in Charterhouse will qualify for this right; nevertheless a lawyer can advise whether you qualify for a lease extension. In certain 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 generally accepted that a property with more than one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional ninety years added to any lease with more than 45 years unexpired, the premises will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
Engaging our service will provide you better control over the value of your Charterhouse leasehold, as your property will be more valuable and marketable in respect of lease length should you want to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Hunter was the the leasehold proprietor of a 2 bedroom apartment in Charterhouse on the market with a lease of just over sixty years outstanding. Hunter on an informal basis approached his freeholder being a well known Manchester-based freehold company for a lease extension. The landlord was prepared to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £200 annually. No ground rent would be due on a lease extension were Hunter to exercise his statutory right. Hunter procured expert advice and was able to make a more informed judgement and handle with the matter and ending up with a market value flat.
Mr Ben Morris bought a one bedroom flat in Charterhouse in October 2004. We are asked if we could estimate the price could be for a 90 year extension to my lease. Identical homes in Charterhouse with 100 year plus lease were valued about £223,400. The average ground rent payable was £60 invoiced quarterly. The lease ended in 2084. Given that there were 59 years remaining we estimated the premium to the freeholder to extend the lease to be within £27,600 and £31,800 not including professional charges.
An example of a Lease Extension case for a Charterhouse property is Flat 89 Trinity Court Grays Inn Road in February 2013. the Tribunal found that the premium to be paid by the tenant on the grant of a new lease, in accordance with section 56 and Schedule 13 to the Leasehold Reform, Housing and Urban Development Act 1993 should be £36,229. This case related to 1 flat. The remaining number of years on the lease was 66.8 years.