Chatteris leases on domestic deteriorating in value. Where your lease has about 90 years unexpired, you should start considering the need for a lease extension. 80 years is a significant number: when the remaining term of a lease dips below this level then you begin paying an additional element called marriage value. Leasehold owners in Chatteris will usually qualify for a lease extension; however it’s a good idea to check with a conveyancer to check your eligibility. In certain circumstances you may not qualify. There are prescribed timetables and formalities to comply with once the process has started so it’s sensible to be guided by a lawyer during the process.
It is generally considered that a property with in excess of one hundred years remaining is worth roughly the same as a freehold. Where an additional 90 years added to any lease with more than 35 years unexpired, the residence will be worth the same as a freehold for decades to come.
| 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancers that we work with handle Chatteris 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 lawyer we work with provide it.
In the wake of 9 months of lengthy correspondence with the freeholder of her purpose-built flat in Chatteris, Amber commenced the lease extension process just as her lease was coming close to the all-important 80-year deadline. The legal work completed in May 2013. The freeholder’s charges were kept to an absolute minimum.
In 2014 we were contacted by Dr W Hill who, having acquired a one bedroom apartment in Chatteris in October 2002. We are asked if we could estimate the compensation to the landlord could be for a 90 year extension to my lease. Similar premises in Chatteris with an extended lease were valued around £216,000. The average ground rent payable was £60 invoiced every twelve months. The lease ran out on 9 September 2083. Taking into account 58 years unexpired we estimated the premium to the freeholder to extend the lease to be within £28,500 and £33,000 not including expenses.
Last Autumn we were e-mailed by Mr and Mrs. D Robinson , who bought a ground floor flat in Chatteris in July 2010. The question was if we could approximate the compensation to the landlord could be for a ninety year lease extension. Comparable flats in Chatteris with 100 year plus lease were worth £205,000. The mid-range ground rent payable was £50 billed annually. The lease ran out in 2103. Having 78 years remaining we calculated the compensation to the freeholder to extend the lease to be between £7,600 and £8,800 exclusive of professional charges.