Main reasons to commence your Chislehurst lease extension
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Main reasons to start your Chislehurst lease extension today:
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Increase your lease and increase your <a href="http://www.lendermonitor.com/conveyancing/loc/chislehurst">Chislehurst</a> property value </h4>
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Chislehurst leases on domestic properties are gradually losing value. Where your lease has about ninety years left, you should start considering the need for a lease extension. Eighty years is a significant number: when the unexpired term of a lease dips below this level then you start paying an additional element called marriage value. Leasehold owners in Chislehurst will usually be legally entitled to a lease extension; however a solicitor should be able confirm your eligibility. In certain situations you may not qualify. There are prescribed timetables and formalities to follow once the process is triggered so it’s prudent to be guided by a conveyancer during the process.
<h4>Chislehurst property with a lease extension is almost the same value as a freehold</h4>
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Leasehold properties in Chislehurst with more than one hundred years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and estate charges warrant it. <h4>Lenders will not finance a property with a short lease</h4> Lending institutions have specific criteria when lending funds secured on leasehold homes. Many will simply refrain from lending at all once an unexpired lease term falls below a certain unexpired lease term. Many Lending institutions will not regard property with a remaining below seventy years as acceptable security. In addition to impacting your ability to sell, it is also relevant where you are intending to refinance your Chislehurst property.
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<tr><th>Lender</th>
<th> Requirement
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<td>Barnsley Building Society</td>
<td> 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term.
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<td>Birmingham Midshires</td>
<td> Minimum 70 years from the date of the mortgage.
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<td>Santander</td>
<td> You must report the unexpired lease term to us and await our instructions if: <br />1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or<br />2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or<br />3. no valuation report is provided<br />However, we will not accept a lease where on expiry of the mortgage:<br />(i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or<br />(ii) less than 30 years remain and the loan is repaid on a capital and interest basis<br /><br />We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder.
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<td>Skipton Building Society</td>
<td> 85 years from the date of completion of the mortgage<br /><br />For Buy to Let cases:<br />- lettings must not breach any of the lessee’s covenants; and<br />- consent of the lessor to lettings must be obtained if necessary
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<td>Royal Bank of Scotland</td>
<td> Mortgage term plus 30 years.
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Why use us for your lease extension in Chislehurst? </h4>
<p> Irrespective of whether you are a tenant or a freeholder in Chislehurst,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Chislehurst valuers.
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Chislehurst Lease Extension Case Studies:
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<h5> Blake, Chislehurst, South East London,</h5>
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Blake owned a high value flat in Chislehurst on the market with a lease of a few days over sixty years outstanding. Blake informally approached his freeholder a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of an increased rent to £125 yearly. No ground rent would be due on a lease extension were Blake to exercise his statutory right. Blake obtained expert legal guidance and secured an acceptable deal without resorting to tribunal and sell the property.
<h5>Chislehurst case:</h5>
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Last January we were phoned by Ms E Gómez , who
owned a basement flat in Chislehurst in April 1997. The dilemma was if we could estimate the compensation to the landlord could be to prolong the lease by 90 years. Comparative premises in Chislehurst with 100 year plus lease were worth £205,000. The mid-range ground rent payable was £50 invoiced monthly. The lease terminated in 2104. Having 78 years outstanding we estimated the compensation to the landlord for the lease extension to be within £8,600 and £9,800 plus professional charges.
<div> <h5>Decision in Bromley</h5>
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An example of a Lease Extension decision 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 related to 1 flat. The unexpired term was 72 years.
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