Chessington leases on residential deteriorating in value. Where your lease has about ninety years left, you should start thinking about a lease extension. 80 years is a significant number: when the unexpired term of a lease falls below this level then you start paying an additional element called marriage value. Flat owners in Chessington will usually qualify for a lease extension; however It would be wise to check with a conveyancing solicitor to confirm if you qualify. In some situations you may not qualify. There are also strict deadlines and formalities to comply with once the process has commenced so it’s wise to be guided by a conveyancer during the process.
Leasehold residencies in Chessington with over 100 years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and estate charges justify 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The lawyers that we work with undertake Chessington 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 lawyer we work with provide it.
In the wake of 9 months of unsuccessful negotiations with the freeholder of her two bedroom apartment in Chessington, Grace initiated the lease extension process just as the lease was nearing the critical 80-year threshold. The legal work was concluded in January 2011. The freeholder’s fees were restricted to under 550 GBP.
Last Autumn we were contacted by Dr U David , who bought a one bedroom apartment in Chessington in January 2005. We are asked if we could estimate the premium would likely be for a 90 year lease extension. Similar premises in Chessington with a long lease were in the region of £200,800. The average amount of ground rent was £65 billed annually. The lease concluded on 18 April 2085. Having 60 years as a residual term we calculated the compensation to the freeholder for the lease extension to be within £20,900 and £24,200 plus expenses.
An example of a Lease Extension matter before the tribunal for a Chessington residence is Flat D 15 Claremont Gardens in September 2013. TheTribunal determined in accordance with section48 and Schedule13 of the Leasehold Reform,Housing and Urban Development Act 1993 that the premium for the extended lease should be fourteen thousand one hundred and eighty seven pounds (£14,187.00) This case was in relation to 1 flat.