As the the remaining lease term of a Chelsfield residential lease diminished so does its value and therefore the value of your property. If the lease has, more than 125 years to run then this decrease may be of little impact that being said there will become a stage when a lease has under than eighty years left as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the main logic behind why you should consider extending sooner rather than later. Many flat owners in Chelsfield will meet the qualifying criteria; however a conveyancing solicitor will be able to confirm if you qualify to extend your lease. In limited situations you may not qualify, the most common reason being that you have owned the property for less than two years.
It is generally accepted that a property with in excess of one hundred years remaining is worth approximately the same as a freehold. Where an additional 90 years added to all but the shortest lease, the premises will be worth the same as a freehold for decades to come.
| 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. |
| Coventry Building Society | 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
Regardless of whether you are a tenant or a freeholder in Chelsfield,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Chelsfield valuers.
Owen owned a high value apartment in Chelsfield being sold with a lease of fraction over fifty eight years left. Owen on an informal basis contacted his landlord a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord was keen to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent to start with set at £100 per annum and increase every twenty five years thereafter. No ground rent would be payable on a lease extension were Owen to invoke his statutory right. Owen procured expert legal guidance and secured an acceptable deal informally and readily saleable.
Last Autumn we were phoned by Mr I García , who owned a garden flat in Chelsfield in October 1997. The question was if we could approximate the compensation to the landlord would be to prolong the lease by 90 years. Identical flats in Chelsfield with a long lease were worth £200,000. The mid-range ground rent payable was £50 invoiced monthly. The lease terminated on 17 May 2104. Considering the 78 years as a residual term we calculated the premium to the landlord to extend the lease to be within £8,600 and £9,800 plus costs.
An example of a Lease Extension matter before the tribunal for a Chelsfield flat is 1 Southlands Court Southlands Road in September 2013. The Leasehold Valuation Tribunal determined that the premium to be paid by the tenant on the grant of a new lease, in accordance with section 56 and Schedule 13 of the Leasehold Reform, Housing and Urban Development Act 1993 was £30,541 This case affected 1 flat. The number of years remaining on the existing lease(s) was 50.57 years.