With a domestic leasehold premises in Chatham, you are actually purchasing a right to reside in a property for a set period of time. These days flat leases typically tend to be for 99 years or 125. Many leasehold owners are unconcerned as this seems like a long period of time, you should think about a lease extension sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease gets disproportionately greater particularly once there are less than eighty years left. Leasehold owners in Chatham with a lease nearing 81 years remaining should seriously think of extending it sooner rather than later. Once a lease has less than 80 years left, under the current statute the freeholder is entitled to calculate and demand a greater premium, based on a technical calculation, known as “marriage value” which is payable.
It is conventional wisdom that a residential leasehold with over one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the premises will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Leeds Building Society | |
| Santander | |
| Skipton Building Society | |
| The Mortgage Works |
The lawyers that we work with procure Chatham 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 the wake of 6 months of protracted discussions with the landlord of her two bedroom flat in Chatham, Sophia commenced the lease extension process as the 80 year mark was swiftly approaching. The lease extension was finalised in June 2010. The freeholder’s fees were kept to an absolute minimum.
Last Spring we were e-mailed by Mr I Dupont , who owned a recently refurbished apartment in Chatham in January 2007. The question was if we could estimate the compensation to the landlord would be for a ninety year lease extension. Identical flats in Chatham with an extended lease were worth £225,400. The average amount of ground rent was £45 billed every twelve months. The lease terminated in 2090. Given that there were 64 years unexpired we approximated the compensation to the landlord for the lease extension to be between £15,200 and £17,600 plus expenses.
In 2010 we were e-mailed by Mr Tommy Dupont who, having acquired a garden apartment in Chatham in February 2002. The dilemma was if we could estimate the premium could be to extend the lease by 90 years. Comparative properties in Chatham with an extended lease were valued about £270,000. The average amount of ground rent was £55 collected annually. The lease ran out on 22 September 2101. Considering the 75 years remaining we calculated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 not including professional charges.