Unfortunately that a Chelsfield residential lease is a wasting asset. The lease value reduces in proportion to its lease length. The extent of this is taken for granted in the early years due to the reduction being disguised by increases in the Chelsfield property prices.Where your lease has approximately ninety 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 below 80 years - otherwise a higher amount will be due. The majority of leasehold owners in Chelsfield will be able to extend under the legislation; however a lawyer should be able to confirm whether you are eligibility. In some cases you may not qualify. There are also strict timeframes and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancer throughout the process.
It is generally accepted that a residential leasehold with in excess of one hundred years unexpired lease term is worth roughly the same as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barclays plc | |
| Barnsley Building Society | |
| Birmingham Midshires | |
| Nationwide Building Society | |
| Santander |
The conveyancing solicitors that we work with procure Chelsfield lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
Aarav was the the leasehold proprietor of a high value apartment in Chelsfield on the market with a lease of just over 59 years unexpired. Aarav informally spoke with his landlord a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £200 annually. No ground rent would be payable on a lease extension were Aarav to exercise his statutory right. Aarav procured expert legal guidance and was able to make a more informed judgement and deal with the matter and ending up with a market value flat.
In 2014 we were called by Mrs M Peterson who, having completed a first floor apartment in Chelsfield in September 2002. The question was if we could approximate the compensation to the landlord would likely be for a 90 year extension to my lease. Comparative homes in Chelsfield with 100 year plus lease were in the region of £225,800. The average amount of ground rent was £60 invoiced quarterly. The lease elapsed in 2086. Given that there were 60 years outstanding we estimated the premium to the freeholder for the lease extension to be between £23,800 and £27,400 not including expenses.
An example of a Lease Extension case for a Chelsfield residence 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 was in relation to 1 flat. The unexpired lease term was 50.57 years.