Chipstead leases on residential properties are gradually losing value. Where your lease has about 90 years left, you should start considering the need for a lease extension. It is important to recognise that it is that it is financially advisable for your lease extension to take place before the term of the current lease dips under 80 years - otherwise a higher premium will be payable. Flat owners in Chipstead will usually qualify for a lease extension; however It would be wise to check with a conveyancing solicitor to check your eligibility. In some circumstances you may not be entitled. There are prescribed timetables and steps to comply with once the process has commenced so it’s best to be guided by a conveyancing solicitor during the process.
Leasehold premises in Chipstead with more than one hundred years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and maintenance charges warrant 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. |
| Coventry Building Society | 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage 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 |
Lease extensions in Chipstead can be a difficult process. We recommend you secure 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 in-depth market knowledge 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.
Theo was the the leasehold owner of a studio flat in Chipstead on the market with a lease of a little over sixty years outstanding. Theo informally spoke with his landlord being a well known Manchester-based freehold company for a lease extension. The landlord was keen to give an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent at the outset set at £200 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Theo to invoke his statutory right. Theo obtained expert advice and secured satisfactory deal informally and readily saleable.
In 2010 we were phoned by Mrs N Sánchez who, having acquired a recently refurbished flat in Chipstead in April 2006. The dilemma was if we could approximate the premium would be to extend the lease by an additional years. Comparable premises in Chipstead with a long lease were worth £275,000. The mid-range ground rent payable was £45 billed monthly. The lease lapsed on 7 July 2095. Taking into account 69 years remaining we estimated the compensation to the landlord to extend the lease to be between £12,400 and £14,200 not including expenses.
An example of a Freehold Enfranchisement case for a Chipstead premises 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 unexpired term as at the valuation date was 75 years.