Chatteris leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease becomes more expensive. It is the case that most Chatteris tenants have the right to extend their lease by an additional ninety years by virtue of the 1993 Leasehold Reform Act. Where you are a leasehold owner in Chatteris you would be well advised to investigate if your lease has between 70 and 90 years left. There are compelling reasons why a Chatteris leaseholder with a lease having around eighty years left should take steps to ensure that a lease extension is actioned without delay
Leasehold properties in Chatteris with in excess of one hundred years unexpired on the lease are often 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 freehold unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Bank of Scotland | |
| Barnsley Building Society | |
| National Westminster Bank | |
| Virgin |
Engaging our service gives you better control over the value of your Chatteris leasehold, as your property will be more valuable and saleable in terms of lease length should you want to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Kian owned a studio flat in Chatteris on the market with a lease of a little over 72 years unexpired. Kian on an informal basis spoke with his landlord being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to give 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 Kian to invoke his statutory right. Kian obtained expert legal guidance and secured satisfactory deal informally and readily saleable.
Last month we were contacted by Mr and Mrs. F Gómez , who moved into a purpose-built flat in Chatteris in September 1999. The dilemma was if we could approximate the compensation to the landlord would likely be to extend the lease by a further 90 years. Similar flats in Chatteris with 100 year plus lease were worth £233,200. The average ground rent payable was £60 billed monthly. The lease ran out on 15 July 2087. Considering the 61 years as a residual term we estimated the compensation to the landlord for the lease extension to be within £22,800 and £26,400 not including costs.
Last Autumn we were phoned by Mr and Mrs. Y González , who owned a basement flat in Chatteris in July 2012. We are asked if we could approximate the price could be to extend the lease by 90 years. Identical properties in Chatteris with an extended lease were in the region of £171,800. The average ground rent payable was £55 billed annually. The lease end date was in 2076. Given that there were 50 years remaining we estimated the compensation to the landlord for the lease extension to be between £33,300 and £38,400 plus expenses.