It’s a harsh certainty that a Chislehurst residential lease is a deteriorating asset. As the lease term reduces so does the value of the property. The extent of this is taken for granted in the first few years due to the depreciation being disguised by increases in the Chislehurst property prices.Where your lease has approximately ninety years left, you need to start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease dips below eighty years - otherwise a higher amount will be due. The majority of leasehold owners in Chislehurst will be able to extend under the legislation; however a lawyer will be able to clarify if you are eligibility. In some cases you may not be entitled. There are also strict timeframes and procedures to be adhered to once the process is instigated and you will need to be guided by your conveyancing solicitor from beginning to end of the formalities.
It is conventional wisdom that a residential leasehold with over one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the property will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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. |
Engaging our service will provide you enhanced control over the value of your Chislehurst leasehold, as your property will be more valuable and marketable in relation to the lease length should you decide to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Last year Milo, came seriously near to the eighty-year threshold with the lease on his garden apartment in Chislehurst. In buying his flat twenty years previously, the unexpired term was of minimal concern. Fortunately, he realised he would imminently be paying way over the odds for a lease extension. Milo arranged for a lease extension at the eleventh hour in August. Milo and the freeholder via the management company ultimately settled on sum of £6,000 . If he failed to meet the deadline, the sum would have escalated by a minimum £975.
Mr and Mrs. S Bernard was assigned a lease of a one bedroom apartment in Chislehurst in May 1998. The question was if we could shed any light on how much (approximately) premium would likely be for a 90 year extension to my lease. Identical residencies in Chislehurst with 100 year plus lease were valued around £285,000. The average ground rent payable was £45 invoiced yearly. The lease concluded in 2096. Having 71 years unexpired we approximated the compensation to the freeholder to extend the lease to be between £12,400 and £14,200 exclusive of fees.
An example of a Lease Extension case for a Chislehurst residence 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 residue of the current lease was 72 years.