When it comes to domestic leasehold property in Chalk Farm, you are in fact renting it for a certain period of time. In recent years flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you should consider extending the lease sooner as opposed to later. The general rule is that the shorter the number of years is the cost of extending the lease becomes disproportionately greater especially when there are less than eighty years remaining. Anyone in Chalk Farm with a lease drawing near to 81 years left should seriously consider extending it sooner rather than later. Once a lease has below eighty years remaining, under the current legislation the freeholder can calculate and charge a greater amount, based on a technical computation, known as “marriage value” which is payable.
It is conventional wisdom that a residential leasehold with more than one hundred years remaining is worth approximately the same as a freehold. Where an additional ninety years added to any lease with more than 35 years remaining, the residence will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Coventry Building Society | 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. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| Yorkshire 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. |
Lease extensions in Chalk Farm can be a difficult process. We recommend you procure professional help 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 Chalk Farm lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Subsequent to unsuccessful negotiations with the freeholder of her one bedroom flat in Chalk Farm, Daisy started the lease extension process just as her lease was coming close to the all-important eighty-year mark. The lease extension was concluded in October 2007. The landlord’s costs were kept to an absolute minimum.
Last month we were e-mailed by Dr S Fournier , who was assigned a lease of a one bedroom flat in Chalk Farm in March 2009. The question was if we could approximate the premium would be to prolong the lease by 90 years. Comparable premises in Chalk Farm with a long lease were worth £200,000. The mid-range amount of ground rent was £50 invoiced annually. The lease expiry date was on 1 May 2102. Given that there were 77 years remaining we approximated the premium to the landlord to extend the lease to be between £8,600 and £9,800 exclusive of expenses.
An example of a Lease Extension matter before the tribunal for a Chalk Farm residence is Flat 2 27 Mackeson Road in December 2012. The Tribunal assessed the value of the lease extension premium at £35,435 and rounded the figure to £35,500 This case was in relation to 1 flat. The remaining number of years on the lease was 64.77 years.