The only way is down when it comes to Chathill lease terms. Chathill flats that have a lease term shorter than 80 years will de-escalate in market price even faster, and the cost of extending your lease will go up.
It is conventional wisdom that a property with more than one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an further ninety years added to any lease with more than 45 years remaining, the premises will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date 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. |
Lease extensions in Chathill can be a difficult process. We recommend you procure guidance from a conveyancing solicitor and valuer with experience in this area.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience dealing with Chathill lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Two years ago Nathaniel, came precariously close to the 80-year mark with the lease on his leasehold apartment in Chathill. In buying his home 19 years previously, the lease term was of little relevance. by good luck, he noticed he would soon be paying an escalated premium for Extending the lease. Nathaniel extended the lease at the eleventh hour in September. Nathaniel and the freeholder eventually agreed on sum of £6,000 . If he not met the deadline, the premium would have gone up by at least £900.
In 2014 we were contacted by Ms Ellie Moreau who, having owned a first floor flat in Chathill in March 1997. The dilemma was if we could estimate the price would be for a 90 year extension to my lease. Comparable premises in Chathill with an extended lease were in the region of £166,800. The average ground rent payable was £50 billed per annum. The lease finished in 2075. Having 50 years as a residual term we approximated the premium to the landlord to extend the lease to be within £32,300 and £37,400 plus expenses.
Last Christmas we were contacted by Dr J Allen , who acquired a one bedroom apartment in Chathill in May 1999. We are asked if we could estimate the premium would likely be to prolong the lease by 90 years. Similar flats in Chathill with 100 year plus lease were valued around £280,000. The mid-range amount of ground rent was £45 billed monthly. The lease finished in 2095. Having 70 years outstanding we calculated the compensation to the freeholder for the lease extension to be within £12,400 and £14,200 plus legals.