For those whose Chobham flat is held on a long lease, the message is clear – if you do nothing, your property will ultimately revert to your landlord, leaving you empty-handed. The fewer the years remaining the lower the value of the property and the more it will cost to obtain a lease extension.
Leasehold residencies in Chobham with more than 100 years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and maintenance charges merit 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. |
| 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. |
| 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. |
| 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. |
Lease extensions in Chobham can be a difficult process. We recommend you get 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 a wealth of experience procuring Chobham lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Sam was the the leasehold owner of a studio flat in Chobham being sold with a lease of a few days over 72 years left. Sam informally spoke with his freeholder a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years on the basis of a rise in the rent to £100 annually. No ground rent would be due on a lease extension were Sam to invoke his statutory right. Sam obtained expert advice and was able to make an informed decision and deal with the matter and readily saleable.
Last Summer we were e-mailed by Mrs Sarah Thompson , who acquired a studio flat in Chobham in April 2008. The question was if we could approximate the price could be to extend the lease by an additional years. Comparative properties in Chobham with a long lease were in the region of £218,000. The mid-range amount of ground rent was £45 invoiced every twelve months. The lease terminated on 28 June 2089. Taking into account 63 years as a residual term we approximated the compensation to the freeholder to extend the lease to be between £17,100 and £19,800 exclusive of fees.
Last Christmas we were e-mailed by Mr and Mrs. K Vincent , who bought a purpose-built apartment in Chobham in July 2006. We are asked if we could estimate the price could be to extend the lease by an additional years. Identical flats in Chobham with 100 year plus lease were in the region of £265,000. The mid-range ground rent payable was £50 billed monthly. The lease concluded on 2 April 2099. Considering the 73 years outstanding we calculated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 plus expenses.