Charterhouse leases on domestic properties are gradually losing value. if your lease has about 90 years left, you should start thinking about a lease extension. An important point to note is that it is financially advisable for a lease extension to take place before the term of the existing lease dips below eighty years - otherwise a higher amount will be due. Leasehold owners in Charterhouse will mostly be legally entitled to a lease extension; however It would be wise to check with a lawyer to confirm your eligibility. In some circumstances you may not qualify. There are prescribed deadlines and steps to comply with once the process is initiated so it’s wise to be guided by a conveyancing solicitor during the process.
It is generally considered that a property with more than one hundred years remaining is worth roughly the same as a freehold. Where an further ninety years added to all but the shortest lease, the property will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
Regardless of whether you are a tenant or a freeholder in Charterhouse,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Charterhouse valuers.
Following unsuccessful discussions with the freeholder of her leasehold apartment in Charterhouse, Lydia started the lease extension process as the 80 year mark was rapidly advancing. The transaction was finalised in February 2011. The freeholder’s fees were kept to an absolute minimum.
In 2009 we were called by Mr and Mrs. D Williams who, having owned a purpose-built apartment in Charterhouse in January 1998. We are asked if we could approximate the premium would be to prolong the lease by 90 years. Similar residencies in Charterhouse with 100 year plus lease were worth £206,200. The mid-range amount of ground rent was £55 collected yearly. The lease ran out on 3 May 2082. Taking into account 56 years left we approximated the compensation to the landlord to extend the lease to be between £31,400 and £36,200 exclusive of expenses.
An example of a Lease Extension matter before the tribunal for a Charterhouse premises 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.