When it comes to long leasehold property in Chatteris, you are in fact renting it for a certain amount of time. These days flat leases typically tend to be for 99 years or 125. Even though this may appear like a long period of time, you should consider extending the lease sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease increases markedly notably when there are less than eighty years remaining. Leasehold owners in Chatteris with a lease drawing near to 81 years left should seriously think of extending it sooner than later. When a lease has under 80 years remaining, under the relevant legislation the landlord can calculate and demand a greater amount, based on a technical computation, known as “marriage value” which is payable.
It is generally considered that a residential leasehold with more than 100 years remaining is worth approximately the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the premises will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Godiva Mortgages | |
| National Westminster Bank | |
| Santander | |
| TSB |
Using our service will provide you better control over the value of your Chatteris leasehold, as your property will be more valuable and marketable in terms of lease length should you wish to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Leo owned a 2 bedroom flat in Chatteris being marketed with a lease of a little over 61 years unexpired. Leo informally contacted his landlord a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years on the basis of an increased rent to £50 yearly. Ordinarily, ground rent would not be payable on a lease extension were Leo to invoke his statutory right. Leo obtained expert legal guidance and was able to make a more informed judgement and deal with the matter and readily saleable.
Mr and Mrs. J Allen moved into a first floor flat in Chatteris in June 2009. We are asked if we could shed any light on how much (approximately) compensation to the landlord could be to prolong the lease by a further 90 years. Similar flats in Chatteris with an extended lease were in the region of £210,000. The average ground rent payable was £50 billed yearly. The lease finished in 2106. Taking into account 80 years left we calculated the premium to the landlord for the lease extension to be within £8,600 and £9,800 exclusive of legals.
In 2013 we were called by Mr and Mrs. R Phillips who, having was assigned a lease of a basement apartment in Chatteris in July 1996. The dilemma was if we could estimate the price would be for a ninety year extension to my lease. Similar properties in Chatteris with 100 year plus lease were worth £280,000. The mid-range amount of ground rent was £45 billed annually. The lease ended in 2095. Having 69 years remaining we estimated the premium to the landlord for the lease extension to be within £12,400 and £14,200 plus professional charges.