Chatteris residential property held on a long lease is a depreciating asset as the leaseholder only owns the property for a period of years.
Leasehold residencies in Chatteris with more than 100 years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Chatteris can be a difficult process. We recommend you get guidance from a conveyancing solicitor and surveyor with experience in this area.
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 procuring Chatteris lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Off the back of unsuccessful correspondence with the freeholder of her purpose-built apartment in Chatteris, Stephanie started the lease extension process just as the lease was approaching the critical 80-year deadline. The legal work was finalised in January 2015. The freeholder’s fees were kept to an absolute minimum.
Mr and Mrs. H François owned a one bedroom apartment in Chatteris in August 2010. We are asked if we could estimate the compensation to the landlord would be for a ninety year lease extension. Similar residencies in Chatteris with an extended lease were worth £300,000. The average amount of ground rent was £50 invoiced yearly. The lease finished in 2101. Considering the 75 years outstanding we approximated the premium to the landlord to extend the lease to be within £8,600 and £9,800 plus expenses.
Mr and Mrs. S Gunderson purchased a one bedroom apartment in Chatteris in October 2002. We are asked if we could approximate the price would be to extend the lease by ninety years. Comparative properties in Chatteris with an extended lease were in the region of £250,400. The mid-range ground rent payable was £65 collected quarterly. The lease terminated on 6 May 2090. Having 64 years left we approximated the compensation to the freeholder for the lease extension to be between £19,000 and £22,000 plus expenses.