For anyone whose Choppington property is held on a long lease, our message is clear – if nothing is done, the property will eventually revert to your landlord, leaving you empty-handed. The fewer the years remaining the less it is worth and the more expensive it will be to extend the lease.
It is generally accepted that a residential leasehold with more than 100 years unexpired lease term is worth approximately the same as a freehold. Where an further 90 years added to any lease with more than 45 years remaining, the premises will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| 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. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 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 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Choppington can be a difficult process. We recommend you secure guidance from a conveyancing solicitor and valuer with experience in lease extensions.
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 Choppington lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Callum owned a studio flat in Choppington on the market with a lease of just over 59 years remaining. Callum informally spoke with his freeholder being a well known local-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to grant an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £50 annually. No ground rent would be due on a lease extension were Callum to exercise his statutory right. Callum procured expert advice and was able to make a more informed decision and handle with the matter and readily saleable.
In 2011 we were contacted by Dr Jamie Baker who, having took over the lease of a ground floor apartment in Choppington in August 2000. The question was if we could approximate the price could be to extend the lease by an additional years. Comparable residencies in Choppington with 100 year plus lease were in the region of £265,200. The average ground rent payable was £65 billed per annum. The lease finished in 2091. Given that there were 66 years outstanding we estimated the compensation to the landlord to extend the lease to be within £15,200 and £17,600 exclusive of fees.
Dr Victoria González was assigned a lease of a ground floor apartment in Choppington in August 1995. The question was if we could estimate the compensation to the landlord would likely be for a 90 year extension to my lease. Comparable premises in Choppington with 100 year plus lease were in the region of £198,800. The average amount of ground rent was £55 collected monthly. The lease expiry date was in 2080. Having 55 years left we calculated the premium to the freeholder to extend the lease to be between £33,300 and £38,400 not including professional charges.