Chipstead leases on residential deteriorating in value. Where your lease has about 90 years left, you should start thinking about a lease extension. 80 years is a significant number: when the unexpired term of a lease dips below this level then you start incurring an additional element called marriage value. Leasehold owners in Chipstead will mostly qualify for a lease extension; however it’s a good idea to check with a conveyancer to confirm if you qualify. In some situations you may not qualify. There are also strict timetables and formalities to comply with once the process is triggered so it’s best to be guided by a lawyer during the process.
Leasehold properties in Chipstead with over 100 years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease value 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 service 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
Lease extensions in Chipstead can be a difficult process. We recommend you procure professional help from a conveyancing solicitor and surveyor with experience in this area.
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 procuring Chipstead lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Teddy was the the leasehold proprietor of a 2 bedroom apartment in Chipstead being sold with a lease of fraction over fifty eight years left. Teddy informally approached his landlord being a well known local-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years on the basis of a new rent at the outset set at £100 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Teddy to exercise his statutory right. Teddy procured expert advice and was able to make a more informed decision and deal with the matter and readily saleable.
Last Winter we were contacted by Dr L Vincent , who bought a purpose-built apartment in Chipstead in August 1999. The question was if we could approximate the compensation to the landlord could be for a ninety year lease extension. Identical residencies in Chipstead with a long lease were worth £285,000. The mid-range amount of ground rent was £45 collected quarterly. The lease expiry date was in 2096. Having 71 years unexpired we approximated the compensation to the landlord for the lease extension to be between £12,400 and £14,200 not including costs.
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 related to 3 flats. The number of years remaining on the existing lease(s) was 75 years.