When it comes to residential leasehold premises in Chislehurst, you are actually purchasing a right to reside in a property for a set period of time. In recent years flat leases are usually granted for 99 years or 125. Even though this may appear like a long period of time, you may think about a lease extension sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease increases markedly notably when there are less than 80 years remaining. Anyone in Chislehurst with a lease nearing 81 years remaining should seriously think of extending it as soon as possible. When the lease term has below eighty years remaining, under the relevant Act the freeholder can calculate and charge a larger amount, based on a technical multiplication, known as “marriage value” which is due.
Leasehold properties in Chislehurst with over one hundred years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and service 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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. |
The lawyers that we work with procure Chislehurst lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
Hunter owned a conversion flat in Chislehurst on the market with a lease of just over fifty eight years unexpired. Hunter on an informal basis contacted his freeholder being a well known Manchester-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of a rise in the rent to £100 yearly. No ground rent would be due on a lease extension were Hunter to invoke his statutory right. Hunter procured expert advice and was able to make an informed decision and deal with the matter and ending up with a market value flat.
In 2009 we were contacted by Dr W Gómez who, having moved into a recently refurbished flat in Chislehurst in March 2004. The dilemma was if we could shed any light on how much (approximately) premium would likely be for a 90 year lease extension. Comparative flats in Chislehurst with 100 year plus lease were in the region of £285,000. The average amount of ground rent was £45 invoiced monthly. The lease concluded on 21 February 2097. Taking into account 71 years as a residual term we estimated the compensation to the freeholder to extend the lease to be within £12,400 and £14,200 exclusive of fees.
An example of a Lease Extension case for a Chislehurst property is 70 Andace Park Gardens 133-149 Widmore Road in November 2013. Tribunal determined that the premium payable for the lease extension was £10,052 This case was in relation to 1 flat. The unexpired term as at the valuation date was 72 years.