On the balance of probabilities where you own a flat in North Cheam you actually own a long leasehold interest over your property
It is generally accepted that a residential leasehold with in excess of 100 years remaining is worth roughly the same as a freehold. Where an further 90 years added to any lease with more than 35 years remaining, the premises will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| 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; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in North Cheam can be a difficult process. We recommend you secure guidance from a conveyancer 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 a wealth of experience dealing with North Cheam lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
During the course of the last few months Mason, started to get near to the eighty-year threshold with the lease on his ground floor apartment in North Cheam. Having purchased his flat two decades ago, the lease term was of little importance. Thankfully, it dawned on him that he needed to take action soon on Extending the lease. Mason extended the lease at the eleventh hour in September. Mason and the freeholder subsequently agreed on a premium of £6,000 . If he not met the deadline, the amount would have escalated by at least £950.
In 2010 we were contacted by Dr Kirsty Garcia who, having owned a one bedroom apartment in North Cheam in April 2003. The question was if we could shed any light on how much (approximately) premium would likely be for a 90 year extension to my lease. Identical homes in North Cheam with a long lease were valued about £189,000. The mid-range amount of ground rent was £55 billed yearly. The lease terminated on 16 November 2079. Considering the 53 years unexpired we calculated the premium to the landlord for the lease extension to be within £28,500 and £33,000 exclusive of professional charges.
In 2012 we were called by Mr and Mrs. A Scott who, having owned a garden apartment in North Cheam in January 2005. The question was if we could shed any light on how much (approximately) premium could be for a 90 year lease extension. Identical residencies in North Cheam with an extended lease were worth £290,000. The average ground rent payable was £45 billed quarterly. The lease elapsed in 2099. Taking into account 73 years unexpired we calculated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 exclusive of costs.