For those whose Chelsfield home is held on a long lease, the message is clear – if nothing is done, your property will ultimately revert to the freeholder, leaving you empty-handed. The fewer the years remaining the lower the value of the property and the more it will cost to obtain a lease extension.
Leasehold properties in Chelsfield with in excess of one hundred years outstanding on the lease are often regarded as a ‘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 to be gained by purchasing the freehold unless savings on ground rent and maintenance charges warrant it.
| 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Using our service will provide you better control over the value of your Chelsfield leasehold, as your property will be more valuable and saleable in terms of lease length should you want to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
In the wake of 6 months of unsuccessful negotiations with the landlord of her ground floor flat in Chelsfield, Zoe commenced the lease extension process as the eighty year mark was rapidly nearing. The lease extension completed in August 2012. The freeholder’s costs were restricted to under 450 pounds.
In 2013 we were approached by Dr B Wright who, having moved into a ground floor flat in Chelsfield in May 2004. We are asked if we could shed any light on how much (roughly) compensation to the landlord could be to prolong the lease by 90 years. Identical premises in Chelsfield with a long lease were in the region of £208,600. The mid-range amount of ground rent was £60 invoiced monthly. The lease ran out on 4 October 2082. Taking into account 57 years unexpired we approximated the compensation to the freeholder to extend the lease to be within £30,400 and £35,200 not including expenses.
An example of a Lease Extension decision for a Chelsfield premises is 1 Southlands Court Southlands Road in September 2013. The Leasehold Valuation Tribunal determined that the premium to be paid by the tenant on the grant of a new lease, in accordance with section 56 and Schedule 13 of the Leasehold Reform, Housing and Urban Development Act 1993 was £30,541 This case affected 1 flat. The remaining number of years on the lease was 50.57 years.