Leagrave and Chalton leases on residential deteriorating in value. Where your lease has in the region of ninety years remaining, 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 begin paying an additional element called marriage value. Leasehold owners in Leagrave and Chalton will usually be legally entitled to a lease extension; however a solicitor should be able check if you qualify. In certain circumstances you may not be entitled. There are prescribed timetables and steps to follow once the process is triggered so it’s best to be guided by a conveyancing solicitor during the process.
Leasehold properties in Leagrave and Chalton with in excess of 100 years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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; |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | 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. |
Lease extensions in Leagrave and Chalton can be a difficult process. We recommend you obtain guidance from a lawyer and surveyor 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 in-depth market knowledge dealing with Leagrave and Chalton lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Aarav owned a studio flat in Leagrave and Chalton on the market with a lease of a little over sixty years outstanding. Aarav informally contacted his freeholder a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord was keen to agree an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £100 annually. Ordinarily, ground rent would not be payable on a lease extension were Aarav to exercise his statutory right. Aarav procured expert legal guidance and was able to make a more informed judgement and deal with the matter and readily saleable.
In 2014 we were called by Dr J Bonnet who, having bought a ground floor apartment in Leagrave and Chalton in October 2001. We are asked if we could approximate the price would be to prolong the lease by ninety years. Comparative residencies in Leagrave and Chalton with a long lease were valued about £205,000. The average ground rent payable was £50 billed yearly. The lease expired on 15 January 2104. Having 78 years left we estimated the compensation to the freeholder for the lease extension to be between £7,600 and £8,800 exclusive of fees.
Last November we were contacted by Ms O Pérez , who took over the lease of a ground floor flat in Leagrave and Chalton in February 2008. The dilemma was if we could approximate the compensation to the landlord could be to extend the lease by an additional years. Similar premises in Leagrave and Chalton with an extended lease were valued about £267,600. The mid-range ground rent payable was £65 invoiced annually. The lease terminated in 2093. Considering the 67 years outstanding we calculated the premium to the freeholder to extend the lease to be between £14,300 and £16,400 plus professional charges.