Unfortunately that a Chatteris residential lease is a wasting asset. The lease value drops in proportion to its lease length. The extent of this is taken for granted in the first few years due to the reduction being disguised by increases in the Chatteris property prices.Where your lease has approximately 90 years left, you need to start considering a lease extension. If the number of years remaining falls below 80 years, you will end up paying 50% of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add the property Most leasehold owners in Chatteris will be able to extend under the legislation; however a conveyancer should be able to confirm whether you qualify for an extension. In some situations you may not be entitled. There are also strict timetables and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancing solicitor from beginning to end of the process.
Leasehold premises in Chatteris with in excess of one hundred years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little upside in buying the freehold unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Barclays plc | |
| Birmingham Midshires | |
| Nationwide Building Society | |
| Skipton Building Society |
Lease extensions in Chatteris can be a difficult process. We recommend you get guidance from a conveyancing solicitor and surveyor 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 dealing with Chatteris lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
James was the the leasehold owner of a high value flat in Chatteris being marketed with a lease of fraction over 59 years left. James on an informal basis approached his landlord being a well known London-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to agree an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £125 annually. Ordinarily, ground rent would not be due on a lease extension were James to exercise his statutory right. James obtained expert legal guidance and secured satisfactory resolution without going to tribunal and sell the property.
Mr P Roux moved into a one bedroom apartment in Chatteris in February 2005. We are asked if we could approximate the compensation to the landlord could be to prolong the lease by 90 years. Comparable homes in Chatteris with a long lease were in the region of £213,600. The mid-range amount of ground rent was £60 collected quarterly. The lease ended in 2083. Given that there were 57 years outstanding we calculated the premium to the landlord for the lease extension to be within £30,400 and £35,200 plus fees.
Last year we were e-mailed by Mr and Mrs. T Adams , who was assigned a lease of a studio apartment in Chatteris in May 2006. We are asked if we could approximate the price would be for a 90 year lease extension. Similar premises in Chatteris with an extended lease were valued about £200,000. The mid-range ground rent payable was £50 invoiced every twelve months. The lease finished in 2103. Taking into account 77 years remaining we estimated the premium to the freeholder for the lease extension to be between £8,600 and £9,800 plus professional charges.