Chances are that if you own a flat in Gerrards Cross and Chalfont you actually own a long leasehold interest over your property
It is generally accepted that a residential leasehold with more than one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The conveyancers that we work with undertake Gerrards Cross and Chalfont lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
Last October Oliver, came seriously near to the 80-year mark with the lease on his basement apartment in Gerrards Cross and Chalfont. Having bought his flat twenty years ago, the length of the lease was of no importance. Luckily, he noticed he needed to take action soon on Extending the lease. Oliver extended the lease at the eleventh hour last September. Oliver and the freeholder via the management company ultimately agreed on a premium of £5,000 . If he failed to meet the deadline, the premium would have escalated by at least £850.
Last Winter we were approach by Ms Victoria Smith , who owned a recently refurbished apartment in Gerrards Cross and Chalfont in October 1996. The question was if we could shed any light on how much (approximately) price would likely be to extend the lease by an additional years. Identical homes in Gerrards Cross and Chalfont with a long lease were in the region of £255,000. The mid-range amount of ground rent was £50 collected per annum. The lease ended in 2096. Given that there were 71 years as a residual term we approximated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 plus legals.
An example of a Lease Extension matter before the tribunal for a Gerrards Cross and Chalfont property is Flats 8, 11 and 15 Craigmore Court 46 Murray Road in December 2013. The tribunal held that the price payable by the Applicant tenant of Flat 8 to acquire an extended lease shall be £26,438 plus £1 to the intermediate lessee . The tribunal held that the price payable by the Applicant tenants of Flat 11 to acquire an extended lease shall be £26,791 plus £1 to the intermediate lessee. The tribunal held that the price payable by the Applicant tenant of Flat 15 to acquire an extended lease shall be £26,638 plus £1 to the intermediate lessee . This case affected 3 flats. The unexpired term was 71 years.