The re-sale value of a leasehold property in Chislehurst depends on how long the lease has remaining. If it is near to or less than eighty years you should envisage difficulties on re-sale, so it is recommended to arrange for the lease to be extended before purchasing. It is preferable to start the lease extension process when the lease still has 82 years remaining so that formalities can be addressed prior to the 80 year threshold. Current legislation entitles Chislehurst qualifying lessees to obtain a lease extension of 90 years in addition to the remaining lease term at a peppercorn rent (that is, rent free). The purpose of the valuation is to arrive at an opinion of the premium payable by the lessee to the freeholder for the acquisition of the lease extension.
It is generally accepted that a property with in excess of 100 years unexpired lease term is worth roughly the same as a freehold. Where an additional 90 years added to all but the shortest lease, 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 should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
Lease extensions in Chislehurst can be a difficult process. We recommend you procure professional help from a conveyancing solicitor and valuer 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 Chislehurst lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Twenty four months ago Eliot, started to get close to the eighty-year threshold with the lease on his purpose- built apartment in Chislehurst. In buying his home two decades ago, the unexpired term was of minimal interest. Fortunately, he realised he needed to take action soon on a lease extension. Eliot was able to extend his lease just under the wire last June. Eliot and the landlord who owned the flat above subsequently agreed on a premium of £5,000 . If the lease had gone to less than eighty years, the premium would have escalated by a minimum £975.
Last year we were contacted by Mrs Morgan Adams , who was assigned a lease of a basement apartment in Chislehurst in March 2000. We are asked if we could estimate the compensation to the landlord would likely be for a ninety year extension to my lease. Similar residencies in Chislehurst with an extended lease were in the region of £295,000. The average amount of ground rent was £45 invoiced monthly. The lease ran out in 2100. Considering the 74 years unexpired we approximated the compensation to the landlord to extend the lease to be between £8,600 and £9,800 not including expenses.
An example of a Lease Extension case for a Chislehurst premises 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 related to 1 flat. The unexpired term was 72 years.