On the balance of probabilities if you own a flat in Chertsey you actually own a long leasehold interest over your property
Leasehold premises in Chertsey with over one hundred years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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. |
Using our service will provide you increased control over the value of your Chertsey leasehold, as your property will be more valuable and marketable in respect of lease length should you want to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Michael was the the leasehold owner of a conversion flat in Chertsey being marketed with a lease of a little over 72 years unexpired. Michael informally spoke with his freeholder being a well known local-based freehold company for a lease extension. The landlord was prepared to give an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £100 yearly. No ground rent would be payable on a lease extension were Michael to exercise his statutory right. Michael obtained expert advice and secured satisfactory resolution without resorting to tribunal and ending up with a market value flat.
Last Christmas we were approach by Mr and Mrs. U Anderson , who purchased a newly refurbished apartment in Chertsey in March 2002. The question was if we could approximate the price could be to extend the lease by 90 years. Comparable homes in Chertsey with a long lease were worth £193,400. The mid-range amount of ground rent was £65 invoiced quarterly. The lease ended on 9 February 2085. Having 59 years unexpired we approximated the compensation to the freeholder for the lease extension to be between £21,900 and £25,200 not including legals.
An example of a Lease Extension case for a Chertsey premises is 147 Redford Close in June 2012. The Tribunal determined the lease extension premium to be at £4,200 This case affected 1 flat. The remaining number of years on the lease was 82.93 years.