Chatteris leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease gets more expensive. Legislation has been in place for sometime now which entitles qualifying Chatteris residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Chatteris you really ought to see if your lease has between seventy and ninety years remaining. In particular once the remaining lease term slips under eighty years, the premium due on any lease extension increases dramatically as an element of the premium you pay is what is known as a marriage value
Leasehold premises in Chatteris with in excess of one hundred years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| 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 |
Lease extensions in Chatteris can be a difficult process. We recommend you obtain 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 in-depth market knowledge 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.
Last Spring Riley, started to get near to the 80-year mark with the lease on his studio flat in Chatteris. In buying his flat twenty years ago, the unexpired term was of little bearing. As luck would have it, he recognised he would imminently be paying way over the odds for a lease extension. Riley was able to extend his lease just ahead of time last January. Riley and the landlord in the end settled on sum of £5,500 . If he had missed the deadline, the amount would have escalated by a minimum £850.
In 2012 we were phoned by Mr and Mrs. G Williams who, having completed a ground floor flat in Chatteris in October 1999. The dilemma was if we could shed any light on how much (approximately) premium would likely be for a 90 year extension to my lease. Identical premises in Chatteris with 100 year plus lease were valued around £285,000. The average amount of ground rent was £45 billed quarterly. The lease came to a finish on 27 February 2097. Having 71 years outstanding we calculated the premium to the landlord to extend the lease to be between £12,400 and £14,200 not including professional charges.
Ms M Gray moved into a newly refurbished apartment in Chatteris in October 1996. We are asked if we could approximate the price would likely be for a 90 year lease extension. Comparative premises in Chatteris with 100 year plus lease were in the region of £230,800. The average amount of ground rent was £60 collected quarterly. The lease ended in 2086. Having 60 years as a residual term we approximated the premium to the landlord for the lease extension to be between £24,700 and £28,600 not including professional charges.