The only way is down when it comes to Chelsfield lease terms. Chelsfield flats that have a remaining term fewer than 80 years will drop in value at a rapid rate, and the cost of extending your lease will rise.
Leasehold properties in Chelsfield with in excess of 100 years left 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 premises. In such situations there is often little to be gained by purchasing the reversionary interest 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Coventry Building Society | 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
The conveyancing solicitors that we work with handle 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 conveyancer we work with provide it.
Trailing lengthy negotiations with the landlord of her garden flat in Chelsfield, Anna started the lease extension process just as the lease was coming close to the all-important 80-year deadline. The transaction was concluded in October 2011. The freeholder’s charges were negotiated to less than six hundred GBP.
In 2013 we were e-mailed by Dr S Peterson who, having was assigned a lease of a studio apartment in Chelsfield in January 2006. We are asked if we could approximate the price would likely be for a 90 year lease extension. Similar residencies in Chelsfield with 100 year plus lease were in the region of £300,000. The mid-range ground rent payable was £50 invoiced annually. The lease expired on 6 January 2101. Given that there were 76 years unexpired we estimated the premium to the freeholder for the lease extension to be between £8,600 and £9,800 exclusive of legals.
An example of a Lease Extension matter before the tribunal 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 was in relation to 1 flat. The remaining number of years on the lease was 50.57 years.