There is no doubt about it a leasehold flat or house in Chelsfield is a wasting asset as a result of the shortening lease. If the residual term has, beyond one hundred years remaining then this decrease may be negligible nevertheless there will become a stage when a lease has less than 80 years left as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the primary rational as to why you should extend the lease sooner than later. Most flat owners in Chelsfield will qualify for this right; however a conveyancing solicitor should be able to advise if you qualify to extend your lease. In certain situations you may not qualify, the most common reason being that you have owned the property for less than two years.
It is conventional wisdom that a property with over 100 years remaining is worth approximately the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the premises will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| 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. |
Irrespective of whether you are a tenant or a freeholder 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 in-depth market knowledge and the close ties they enjoy with Chelsfield valuers.
Off the back of protracted correspondence with the freeholder of her one bedroom apartment in Chelsfield, Katie started the lease extension process just as the lease was coming close to the crucial 80-year deadline. The legal work was finalised in March 2015. The landlord’s costs were kept to an absolute minimum.
Last Summer we were e-mailed by Dr K Brown , who owned a first floor apartment in Chelsfield in October 2006. The question was if we could shed any light on how much (approximately) compensation to the landlord would be for a ninety year lease extension. Comparable residencies in Chelsfield with an extended lease were in the region of £300,000. The mid-range ground rent payable was £50 billed yearly. The lease ended on 17 March 2102. Having 76 years outstanding we estimated the premium to the freeholder for the lease extension to be within £8,600 and £9,800 exclusive of fees.
An example of a Lease Extension case 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 related to 1 flat. The unexpired residue of the current lease was 50.57 years.