Chatteris leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease becomes more expensive. Legislation has been in place for sometime now which entitles qualifying Chatteris residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Chatteris you should investigate if your lease has between 70 and ninety years remaining. There are good reasons why a Chatteris flat owner with a lease having around 80 years unexpired should take steps to ensure that a lease extension is actioned without delay
It is generally considered that a residential leasehold with over 100 years unexpired lease term is worth roughly the same as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| 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. |
The conveyancing solicitors that we work with undertake Chatteris 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.
Trailing unsuccessful negotiations with the freeholder of her purpose-built apartment in Chatteris, Aimee commenced the lease extension process as the 80 year deadline was swiftly advancing. The lease extension was finalised in November 2010. The landlord’s charges were negotiated to about 700 pounds.
In 2010 we were phoned by Mr and Mrs. G Gunderson who, having purchased a one bedroom apartment in Chatteris in January 1997. The dilemma was if we could estimate the price would be for a ninety year lease extension. Similar properties in Chatteris with an extended lease were worth £248,000. The average amount of ground rent was £65 invoiced quarterly. The lease finished in 2089. Having 63 years remaining we calculated the premium to the freeholder for the lease extension to be between £20,900 and £24,200 exclusive of fees.
Last Autumn we were approach by Mrs Rosie Rogers , who acquired a garden apartment in Chatteris in October 2004. We are asked if we could shed any light on how much (roughly) price would be to prolong the lease by ninety years. Identical homes in Chatteris with an extended lease were in the region of £181,600. The average ground rent payable was £55 invoiced per annum. The lease came to a finish on 15 May 2078. Considering the 52 years remaining we calculated the premium to the landlord to extend the lease to be within £30,400 and £35,200 not including costs.