With a long leasehold property in Chipstead, you are in fact renting it for a certain amount of time. In recent years flat leases are usually granted for 99 years or 125. Many leasehold owners become complacent as this seems like a lengthy period of time, you may think about a lease extension sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly particularly when there are less than eighty years remaining. Residents in Chipstead with a lease drawing near to 81 years left should seriously think of extending it sooner rather than later. When the lease term has under 80 years left, under the relevant legislation the freeholder can calculate and demand a larger premium, assessed on a technical calculation, known as “marriage value” which is due.
Leasehold properties in Chipstead 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 premises. In such situations there is often little to be gained by buying the freehold 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. |
| Birmingham Midshires | Minimum 70 years from the date 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. |
| Yorkshire 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. |
Lease extensions in Chipstead can be a difficult process. We recommend you procure professional help from a conveyancing solicitor 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 a wealth of experience dealing with Chipstead lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Off the back of protracted negotiations with the landlord of her one bedroom apartment in Chipstead, Tia initiated the lease extension process just as the lease was nearing the all-important 80-year deadline. The lease extension completed in March 2006. The landlord’s charges were negotiated to below 700 pounds.
In 2009 we were called by Mr and Mrs. C Dupont who, having owned a studio flat in Chipstead in September 1997. We are asked if we could shed any light on how much (roughly) premium could be for a ninety year extension to my lease. Identical premises in Chipstead with 100 year plus lease were valued around £300,000. The mid-range ground rent payable was £50 billed monthly. The lease came to a finish in 2102. Having 76 years left we estimated the compensation to the freeholder to extend the lease to be within £8,600 and £9,800 plus legals.
An example of a Freehold Enfranchisement matter before the tribunal 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 term as at the valuation date was 75 years.