The basic rule is, all other factors being equal, the shorter the lease the more costly the premium. Qualifying leaseholders in Chipstead may extend the lease for a further ninety years in accordance with Leasehold Reform legislation. Do think carefully before delaying your Chipstead lease extension. Postponing the costs now simply escalates the amount you will ultimately have to pay for a lease extension.
It is conventional wisdom that a residential leasehold with in excess of one hundred years remaining is worth approximately the equivalent as a freehold. Where an additional 90 years added to any lease with more than 45 years remaining, the residence will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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; |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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. |
Irrespective of whether you are a tenant or a landlord in Chipstead,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Chipstead valuers.
Ben was the the leasehold proprietor of a conversion apartment in Chipstead being marketed with a lease of fraction over 61 years remaining. Ben informally spoke with his landlord being a well known London-based freehold company for a lease extension. The freeholder was keen to agree an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £50 per annum. No ground rent would be payable on a lease extension were Ben to invoke his statutory right. Ben procured expert legal guidance and was able to make a more informed judgement and handle with the matter and sell the property.
Last Spring we were called by Mr A Adams , who completed a garden flat in Chipstead in April 1995. We are asked if we could shed any light on how much (roughly) premium could be for a ninety year extension to my lease. Similar homes in Chipstead with a long lease were in the region of £171,800. The average amount of ground rent was £55 billed quarterly. The lease finished on 20 April 2076. Given that there were 50 years left we approximated the premium to the freeholder to extend the lease to be within £33,300 and £38,400 exclusive of legals.
An example of a Freehold Enfranchisement decision 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 affected 3 flats. The unexpired residue of the current lease was 75 years.