It’s an underpublicised certainty that a Chelsfield residential lease is a wasting asset. As the lease term diminishes so does the value of the property. The extent of this is taken for granted in the first few years due to the depreciation being disguised by increases in the Chelsfield property market.Where your lease has approximately 90 years left, you need to start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease dips lower than 80 years - otherwise a higher amount will be due. Most flat owners in Chelsfield will be able to extend under the legislation; however a lawyer will be able to clarify whether you are eligibility. In some cases you may not be entitled. There are also strict timetables and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancing solicitor from beginning to end of the formalities.
It is conventional wisdom that a residential leasehold with over 100 years remaining is worth roughly the same as a freehold. Where an additional ninety years added to any lease with more than 35 years remaining, the residence will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Yorkshire 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. |
Regardless of whether you are a tenant or a landlord in Chelsfield,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Chelsfield valuers.
Subsequent to unsuccessful discussions with the freeholder of her purpose-built flat in Chelsfield, Olivia started the lease extension process just as her lease was nearing the all-important eighty-year threshold. The legal work completed in January 2005. The landlord’s costs were kept to an absolute minimum.
In 2011 we were contacted by Mr and Mrs. U Martin who, having took over the lease of a studio flat in Chelsfield in June 1999. We are asked if we could shed any light on how much (roughly) premium would be for a ninety year extension to my lease. Identical flats in Chelsfield with a long lease were in the region of £257,800. The average amount of ground rent was £65 collected every twelve months. The lease ended on 8 June 2090. Having 65 years outstanding we approximated the premium to the freeholder for the lease extension to be within £18,100 and £20,800 not including fees.
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 number of years remaining on the existing lease(s) was 50.57 years.