Chobham leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease becomes more expensive. It is the case that most Chobham tenants have the right to extend their lease by an additional ninety years under the 1993 Leasehold Reform Act. Where you are a leasehold owner in Chobham you should investigate if your lease has between seventy and 90 years left. There are good reasons why a Chobham flat owner with a lease having around 80 years left should take steps to make sure that a lease extension is actioned without delay
It is conventional wisdom that a property with more than 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an further 90 years added to any lease with more than 30 years remaining, the property will be equivalent in value to 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. |
| 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. |
Lease extensions in Chobham can be a difficult process. We recommend you get guidance from a conveyancer and valuer well versed in the legislation and lease extension process.
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 Chobham lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In recent months Sam, came precariously near to the 80-year mark with the lease on his first floor flat in Chobham. Having bought his home two decades ago, the length of the lease was of no significance. by good luck, he noticed he would imminently be paying way over the odds for Extending the lease. Sam arranged for a lease extension just under the wire last July. Sam and the freeholder via the managing agents eventually agreed on the final figure of £6,000 . If the lease had slid to less than 80 years, the price would have gone up by a minimum £1,100.
Mr and Mrs. W Girard bought a one bedroom flat in Chobham in February 2012. We are asked if we could shed any light on how much (roughly) compensation to the landlord would be for a ninety year lease extension. Comparative properties in Chobham with an extended lease were valued around £260,000. The mid-range amount of ground rent was £50 billed yearly. The lease elapsed on 4 October 2097. Having 72 years outstanding we calculated the compensation to the freeholder for the lease extension to be between £9,500 and £11,000 exclusive of fees.
Mr and Mrs. H Harris owned a one bedroom flat in Chobham in April 2005. The question was if we could approximate the price would likely be to extend the lease by 90 years. Comparable homes in Chobham with a long lease were worth £256,600. The average ground rent payable was £60 billed quarterly. The lease came to a finish in 2077. Considering the 52 years outstanding we estimated the compensation to the landlord to extend the lease to be between £41,800 and £48,400 plus costs.