The only way is down when it comes to Chalfont St Peter lease terms. Chalfont St Peter flats that have a lease term less than than eighty years will de-escalate in market price even faster, and the cost of extending your lease will increase.
Leasehold premises in Chalfont St Peter with over one hundred years remaining on the lease are sometimes regarded as a ‘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 freehold unless savings on ground rent and service charges justify 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 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; |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
The conveyancers that we work with handle Chalfont St Peter 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 lawyer we work with provide it.
In 2014 Daniel, started to get near to the eighty-year threshold with the lease on his one bedroom flat in Chalfont St Peter. Having bought his home 19 years previously, the unexpired term was of no interest. Luckily, it dawned on him that he needed to take steps soon on a lease extension. Daniel was able to extend his lease just in the nick of time in May. Daniel and the landlord who owned the flat above subsequently agreed on an amount of £6,000 . If the lease had descended to less than 80 years, the amount would have increased by at least £1,125.
In 2012 we were e-mailed by Ms Rachel Rose who, having owned a one bedroom apartment in Chalfont St Peter in September 2010. The question was if we could approximate the price could be for a 90 year extension to my lease. Comparative premises in Chalfont St Peter with a long lease were worth £250,400. The mid-range ground rent payable was £65 collected every twelve months. The lease ended on 25 June 2089. Taking into account 64 years outstanding we calculated the premium to the freeholder to extend the lease to be between £19,000 and £22,000 not including expenses.
An example of a Lease Extension decision for a Chalfont St Peter premises 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 residue of the current lease was 71 years.