When it comes to long leasehold premises in Chipstead, you are actually buying an entitlement to reside in a property for a prescribed time frame. In recent years flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you should consider extending the lease sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease increases markedly notably when there are fewer than eighty years left. Residents in Chipstead with a lease approaching 81 years left should seriously consider extending it as soon as possible. When the lease term has under eighty years outstanding, under the current statute the freeholder can calculate and levy a greater premium, based on a technical multiplication, strangely termed as “marriage value” which is due.
Leasehold residencies in Chipstead with over one hundred years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start 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. |
Irrespective of whether you are a tenant or a freeholder in Chipstead,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Chipstead valuers.
During the course of the last few months Henry, started to get near to the eighty-year mark with the lease on his first floor apartment in Chipstead. In buying his home 18 years ago, the lease term was of little relevance. Thankfully, he noticed he needed to take action soon on a lease extension. Henry extended the lease just in the nick of time last August. Henry and the landlord subsequently settled on sum of £6,000 . If he had missed the deadline, the premium would have become more costly by at least £1,075.
Last Autumn we were called by Mrs Aimee Lefèvre , who purchased a garden apartment in Chipstead in June 1998. The question was if we could estimate the price could be for a 90 year lease extension. Identical premises in Chipstead with 100 year plus lease were valued around £250,400. The mid-range ground rent payable was £65 collected monthly. The lease terminated in 2089. Having 64 years left we approximated the premium to the landlord to extend the lease to be within £19,000 and £22,000 plus costs.
An example of a Freehold Enfranchisement case for a Chipstead residence is 223 Brighton Road in September 2013. The premium payable for the acquisition freehold of the properties should be £10,934 (Ten thousand,nine hundred and thirty four pounds) This case was in relation to 3 flats. The unexpired lease term was 75 years.