Chelsfield leases on domestic properties are gradually losing value. Where your lease has approximately ninety years unexpired, you should start considering the need for a lease extension. An important point to note is that it is financially advisable for your lease extension to be in place before the term of the current lease falls lower than 80 years - otherwise a higher amount will be payable. Flat owners in Chelsfield will mostly be legally entitled to a lease extension; however It would be wise to check with a lawyer to check your eligibility. In some circumstances you may not qualify. There are also strict deadlines and steps to comply with once the process has commenced so it’s wise to be guided by a conveyancing solicitor during the process.
Leasehold residencies in Chelsfield with over 100 years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges merit 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The lawyers that we work with undertake Chelsfield 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 conveyancing solicitor we work with provide it.
In the wake of 6 months of lengthy negotiations with the freeholder of her basement flat in Chelsfield, Caitlin commenced the lease extension process just as the lease was approaching the all-important 80-year threshold. The legal work was finalised in April 2015. The freeholder’s charges were negotiated to about 500 GBP.
Dr Y Murphy purchased a purpose-built flat in Chelsfield in March 1998. We are asked if we could estimate the price could be for a ninety year lease extension. Similar flats in Chelsfield with 100 year plus lease were valued about £174,200. The average ground rent payable was £55 invoiced quarterly. The lease elapsed on 22 February 2077. Having 51 years remaining we estimated the compensation to the freeholder to extend the lease to be within £31,400 and £36,200 not including legals.
An example of a Lease Extension case for a Chelsfield property 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 was in relation to 1 flat. The remaining number of years on the lease was 50.57 years.