It’s an underpublicised truth that a Chatteris residential lease is a deteriorating asset. The lease value reduces in proportion to its lease length. The extent of this is not fully appreciated in the first few years due to the depreciation being disguised by increases in the Chatteris property market.Where your lease has approximately 90 years left, you should start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease slips under 80 years - otherwise a higher amount will be payable. Most leasehold owners in Chatteris will be able to extend under the legislation; however a conveyancing solicitor should be able to clarify if you qualify for an extension. In some cases you may not be entitled. There are also strict deadlines and procedures to follow once the process has commenced and you will need to be guided by your lawyer from beginning to end of the formalities.
It is generally accepted that a property with more than one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional ninety years added to any lease with more than 30 years remaining, the residence will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | |
| Godiva Mortgages | |
| Skipton Building Society | |
| TSB | |
| Royal Bank of Scotland |
Retaining our service gives you increased control over the value of your Chatteris leasehold, as your property will be more valuable and saleable in terms of lease length should you wish to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Hunter owned a 2 bedroom flat in Chatteris on the market with a lease of a little over 61 years left. Hunter on an informal basis spoke with his freeholder a well known local-based freehold company for a lease extension. The freeholder was prepared to give an extension on non-statutory terms taking the lease to 125 years subject to a new rent to start with set at £150 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Hunter to exercise his statutory right. Hunter procured expert advice and was able to make a more informed judgement and handle with the matter and readily saleable.
In 2012 we were contacted by Mr and Mrs. E Pérez who, having bought a ground floor flat in Chatteris in October 2011. We are asked if we could estimate the premium would be to prolong the lease by an additional years. Comparable properties in Chatteris with 100 year plus lease were worth £189,000. The mid-range amount of ground rent was £55 invoiced monthly. The lease terminated on 9 February 2079. Taking into account 53 years outstanding we calculated the compensation to the freeholder to extend the lease to be between £28,500 and £33,000 not including expenses.
Mr C Baker owned a studio flat in Chatteris in February 2001. We are asked if we could estimate the price could be to extend the lease by 90 years. Identical premises in Chatteris with a long lease were worth £290,000. The mid-range ground rent payable was £45 billed annually. The lease terminated on 12 May 2099. Taking into account 73 years outstanding we approximated the premium to the landlord to extend the lease to be between £9,500 and £11,000 plus professional charges.