Chesterton leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease gets more expensive. Most owners of residential leasehold property in Chesterton enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Chesterton you must check if your lease has between 70 and ninety years remaining. In particular once the remaining lease term slips under 80 years, the cost of any lease extension sharply increases as an element of the premium you pay is what is known as a marriage value
Leasehold premises in Chesterton with in excess of one hundred years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and maintenance charges merit it.
| 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; |
| Birmingham Midshires | 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. |
Lease extensions in Chesterton can be a difficult process. We recommend you procure professional help from a conveyancer and surveyor well versed in the legislation and lease extension process.
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.
Eli was the the leasehold proprietor of a studio apartment in Chesterton being sold with a lease of a few days over fifty eight years unexpired. Eli on an informal basis contacted his freeholder a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to agree an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £50 yearly. No ground rent would be due on a lease extension were Eli to invoke his statutory right. Eli obtained expert legal guidance and was able to make a more informed decision and deal with the matter and ending up with a market value flat.
In 2009 we were approached by Mr and Mrs. Y Wood who, having completed a newly refurbished apartment in Chesterton in September 2002. The dilemma was if we could shed any light on how much (roughly) price would be to prolong the lease by a further 90 years. Similar flats in Chesterton with 100 year plus lease were worth £250,400. The mid-range amount of ground rent was £65 invoiced annually. The lease finished in 2090. Taking into account 64 years remaining we approximated the compensation to the landlord to extend the lease to be between £19,000 and £22,000 not including professional charges.
In 2014 we were called by Mr R Hernández who, having took over the lease of a one bedroom apartment in Chesterton in June 2007. The question was if we could estimate the premium could be to prolong the lease by 90 years. Identical homes in Chesterton with 100 year plus lease were worth £184,000. The average ground rent payable was £55 billed yearly. The lease came to a finish on 15 April 2079. Considering the 53 years outstanding we estimated the compensation to the freeholder to extend the lease to be within £28,500 and £33,000 plus professional charges.