Chatteris residential property held on a long lease is a depreciating asset because a leaseholder only owns the property for a period of years.
It is generally considered that a property with more than 100 years remaining is worth roughly the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the property will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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. |
| 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a landlord in Chatteris,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Chatteris valuers.
Off the back of unsuccessful discussions with the landlord of her studio apartment in Chatteris, Rachel commenced the lease extension process just as the lease was approaching the critical 80-year mark. The legal work completed in September 2015. The landlord’s costs were kept to an absolute minimum.
In 2012 we were phoned by Mrs Jennifer Bonnet who, having took over the lease of a purpose-built flat in Chatteris in October 2007. We are asked if we could shed any light on how much (approximately) premium could be to extend the lease by an additional years. Comparative properties in Chatteris with a long lease were in the region of £290,000. The average ground rent payable was £45 billed annually. The lease came to a finish on 13 October 2098. Taking into account 73 years outstanding we calculated the compensation to the freeholder for the lease extension to be between £9,500 and £11,000 exclusive of costs.
In 2014 we were phoned by Ms R Thomas who, having took over the lease of a recently refurbished flat in Chatteris in April 2007. We are asked if we could approximate the price would be for a ninety year lease extension. Similar premises in Chatteris with an extended lease were in the region of £240,600. The average ground rent payable was £65 billed quarterly. The lease came to a finish on 15 October 2087. Having 62 years outstanding we estimated the premium to the freeholder to extend the lease to be between £21,900 and £25,200 not including legals.