Chatham leases on domestic deteriorating in value. if your lease has about 90 years remaining, you should start considering the need for a lease extension. 80 years is a significant number: when the remaining term of a lease falls below this level then you begin incurring an additional element called marriage value. Flat owners in Chatham will usually qualify for a lease extension; however a solicitor should be able check your eligibility. In certain cases you may not be entitled. There are also strict timetables and procedures to follow once the process is initiated so it’s sensible to be guided by a conveyancing solicitor during the process.
Leasehold premises in Chatham with in excess of 100 years left 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 premises. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and estate charges warrant it.
| 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. |
| 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancing solicitors 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 conveyancing solicitor we work with provide it.
In the wake of 9 months of unsuccessful discussions with the landlord of her one bedroom apartment in Chatham, Yasmin started the lease extension process as the 80 year threshold was swiftly advancing. The legal work completed in April 2013. The landlord’s charges were kept to an absolute minimum.
Ms H Scott moved into a ground floor apartment in Chatham in June 2000. The dilemma was if we could shed any light on how much (approximately) price would be for a ninety year lease extension. Identical premises in Chatham with a long lease were in the region of £285,000. The average amount of ground rent was £55 invoiced every twelve months. The lease ended on 4 July 2105. Taking into account 79 years remaining we approximated the premium to the freeholder to extend the lease to be within £13,300 and £15,400 plus legals.
In 2014 we were approached by Dr Jamie Alexander who, having took over the lease of a basement apartment in Chatham in May 1998. The question was if we could shed any light on how much (roughly) compensation to the landlord could be for a ninety year extension to my lease. Comparable flats in Chatham with an extended lease were worth £193,400. The mid-range ground rent payable was £65 collected quarterly. The lease terminated in 2085. Given that there were 59 years left we estimated the compensation to the freeholder for the lease extension to be within £21,900 and £25,200 not including fees.