Chelsea leases on residential deteriorating in value. if your lease has in the region of 90 years left, you should start thinking about a lease extension. It is important to recognise that it is that it is financially advisable for the lease extension to take place before the term of the existing lease dips under 80 years - otherwise a higher amount will be due. Flat owners in Chelsea will usually qualify for a lease extension; however it’s a good idea to check with a lawyer to check if you qualify. In some circumstances you may not be entitled. There are also strict timetables and formalities to comply with once the process has started so it’s wise to be guided by a conveyancer during the process.
It is conventional wisdom that a property with in excess of one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional ninety years added to any lease with more than 35 years unexpired, the premises will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Regardless of whether you are a tenant or a freeholder in Chelsea,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Chelsea valuers.
Following unsuccessful correspondence with the landlord of her two bedroom flat in Chelsea, Jordan started the lease extension process just as the lease was approaching the all-important 80-year threshold. The lease extension was concluded in September 2008. The landlord’s fees were kept to an absolute minimum.
Last month we were phoned by Mrs B Miller , who completed a one bedroom apartment in Chelsea in October 1997. We are asked if we could approximate the premium would likely be for a 90 year lease extension. Similar premises in Chelsea with a long lease were worth £265,000. The average amount of ground rent was £50 billed yearly. The lease lapsed in 2100. Given that there were 74 years left we calculated the premium to the landlord to extend the lease to be within £9,500 and £11,000 plus costs.
An example of a Lease Extension matter before the tribunal for a Chelsea premises is 150A Albert Palace Mansions Lurline Gardens in July 2013. The Tribunal determined that the premium payable for the new lease of the subject property was £42,069 This case was in relation to 1 flat. The unexpired term was 57.06 years.