Chertsey residential property owned on a long lease is a wasting asset because a leaseholder merely owns the property for a set term.
It is generally accepted that a property with over one hundred years remaining is worth approximately the equivalent as a freehold. Where an additional ninety years added to any lease with more than 35 years remaining, the residence will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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; |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Regardless of whether you are a tenant or a freeholder in Chertsey,the lease extension experts 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 Chertsey valuers.
Following protracted negotiations with the landlord of her ground floor flat in Chertsey, Stephanie initiated the lease extension process as the 80 year threshold was rapidly approaching. The legal work was finalised in November 2011. The landlord’s charges were negotiated to less than 650 GBP.
Last Spring we were contacted by Mr A Pérez , who owned a ground floor apartment in Chertsey in September 1995. The question was if we could approximate the premium would be to prolong the lease by a further 90 years. Identical homes in Chertsey with a long lease were in the region of £250,000. The average ground rent payable was £50 collected yearly. The lease finished on 15 May 2094. Having 69 years unexpired we approximated the premium to the landlord for the lease extension to be within £9,500 and £11,000 exclusive of expenses.
An example of a Lease Extension decision for a Chertsey residence is 147 Redford Close in June 2012. The Tribunal determined the lease extension premium to be at £4,200 This case related to 1 flat. The number of years remaining on the existing lease(s) was 82.93 years.