Chesterton leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease gets more expensive. Legislation has been in place for sometime now allowing qualifying Chesterton residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Chesterton you must investigate if your lease has between 70 and ninety years left. In particular once the remaining lease term slips under eighty years, the premium due on any lease extension increases dramatically as part of the premium you pay is what is known as a marriage value
Leasehold premises in Chesterton with over one hundred years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| 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. |
| Godiva Mortgages | 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. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Chesterton can be a difficult process. We recommend you procure guidance from a lawyer and valuer 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 Chesterton lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Following lengthy negotiations with the freeholder of her first floor apartment in Chesterton, Kirsty initiated the lease extension process as the 80 year threshold was swiftly coming. The legal work completed in February 2015. The freeholder’s charges were negotiated to approximately 450 pounds.
Dr K Miller bought a recently refurbished apartment in Chesterton in November 2011. The dilemma was if we could shed any light on how much (roughly) price would be to prolong the lease by ninety years. Similar premises in Chesterton with an extended lease were in the region of £295,000. The average amount of ground rent was £45 invoiced quarterly. The lease ended in 2100. Having 74 years as a residual term we estimated the premium to the landlord to extend the lease to be between £8,600 and £9,800 plus professional charges.
Last Christmas we were e-mailed by Mrs I Jones , who acquired a one bedroom apartment in Chesterton in November 1995. The question was if we could estimate the compensation to the landlord could be to prolong the lease by an additional years. Comparative premises in Chesterton with 100 year plus lease were valued about £243,000. The average ground rent payable was £65 billed per annum. The lease expired in 2089. Considering the 63 years outstanding we calculated the premium to the freeholder to extend the lease to be within £20,000 and £23,000 plus legals.