The market value of Chathill leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of a lease extension can escalate significantly once the unexpired lease term is less than eighty years
It is generally accepted that a property with over 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| 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. |
| Leeds Building Society | 85 years remaining from the start 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. |
Lease extensions in Chathill can be a difficult process. We recommend you get professional help from a conveyancing solicitor and valuer well versed in the legislation and lease extension process.
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 procuring Chathill lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
During the course of the last few months Tommy, came precariously close to the eighty-year threshold with the lease on his basement apartment in Chathill. Having bought his home 18 years previously, the lease term was of minimal significance. Fortunately, it dawned on him that he would soon be paying an inflated amount for Extending the lease. Tommy was able to extend his lease just under the wire last March. Tommy and the freeholder via the management company in the end agreed on an amount of £5,500 . If the lease had fallen below eighty years, the sum would have increased by a minimum £1,100.
In 2013 we were contacted by Mr and Mrs. U Wright who, having bought a one bedroom apartment in Chathill in October 2008. The question was if we could estimate the price would be to extend the lease by ninety years. Similar flats in Chathill with an extended lease were in the region of £295,000. The mid-range ground rent payable was £45 collected every twelve months. The lease concluded on 20 February 2100. Having 74 years outstanding we estimated the compensation to the freeholder for the lease extension to be between £9,500 and £11,000 exclusive of fees.
In 2014 we were contacted by Dr Adam Sharif who, having acquired a ground floor flat in Chathill in March 1995. We are asked if we could approximate the compensation to the landlord could be for a 90 year lease extension. Identical homes in Chathill with a long lease were valued around £243,000. The mid-range ground rent payable was £65 invoiced quarterly. The lease expired in 2089. Taking into account 63 years left we estimated the compensation to the freeholder to extend the lease to be within £20,000 and £23,000 exclusive of professional charges.