On the balance of probabilities where you own a flat in Chertsey you actually own a long leasehold interest over your property
Leasehold properties in Chertsey with over 100 years left on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and estate 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The lawyers that we work with undertake Chertsey 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.
After protracted negotiations with the landlord of her one bedroom apartment in Chertsey, Olivia commenced the lease extension process just as her lease was nearing the crucial eighty-year mark. The transaction was concluded in September 2014. The landlord’s costs were kept to an absolute minimum.
Last Spring we were called by Dr M Bertrand , who completed a one bedroom apartment in Chertsey in February 1995. We are asked if we could shed any light on how much (approximately) price could be for a ninety year lease extension. Similar flats in Chertsey with a long lease were valued around £225,400. The mid-range ground rent payable was £45 collected quarterly. The lease terminated in 2090. Taking into account 64 years unexpired we estimated the premium to the landlord for the lease extension to be between £15,200 and £17,600 not including costs.
An example of a Lease Extension case for a Chertsey flat 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 unexpired term was 82.93 years.