Owning a flat usually means owning a lease of the property, which has a set term of years. your lease will usually be granted for a fixed period of time , usually 99 or 125 years, although we have seen longer and shorter terms in Chesham. Clearly, the length of lease left shortens over time. This may pass by relatively unnoticed when the flat or house needs to be disposed of or re-mortgaged. The fewer the years remaining the lower the value of the property and the more it will cost to obtain a lease extension. Qualifying long lease owners in Chesham have the legal entitlement to extend the lease for a further 90 years in accordance with legislation. Do give careful consideration before putting off your Chesham lease extension. Holding off that expense now likely increases the price you will eventually incur to extend your lease
Leasehold residencies in Chesham with more than one hundred years outstanding 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 home. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Chesham can be a difficult process. We recommend you obtain guidance from a conveyancing solicitor and surveyor with experience in lease extensions.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge procuring Chesham lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last year David, started to get near to the 80-year threshold with the lease on his studio flat in Chesham. Having bought his home 19 years ago, the length of the lease was of little significance. Thankfully, it dawned on him that he needed to take steps soon on Extending the lease. David arranged for a lease extension at the eleventh hour last August. David and the landlord who owned the flat above subsequently settled on the final figure of £5,500 . If the lease had slid lower than 80 years, the amount would have increased by a minimum £1,100.
In 2013 we were approached by Mr and Mrs. B Smith who, having acquired a garden flat in Chesham in June 2009. We are asked if we could shed any light on how much (approximately) compensation to the landlord would likely be to extend the lease by a further 90 years. Comparative homes in Chesham with an extended lease were valued about £285,000. The average ground rent payable was £55 invoiced yearly. The lease lapsed on 21 November 2105. Given that there were 79 years remaining we calculated the premium to the landlord for the lease extension to be between £13,300 and £15,400 not including costs.
Mr and Mrs. E Ricardo acquired a recently refurbished apartment in Chesham in May 2010. We are asked if we could approximate the price could be for a ninety year lease extension. Identical flats in Chesham with a long lease were in the region of £193,400. The mid-range ground rent payable was £65 invoiced every twelve months. The lease lapsed on 14 July 2085. Taking into account 59 years outstanding we approximated the premium to the freeholder to extend the lease to be between £21,900 and £25,200 plus expenses.