When it comes to long leasehold premises in Chelsfield, you are in fact renting it for a certain period of time. Modern flat leases typically tend to be for 99 years or 125. Many leasehold owners become complacent as this seems like a lengthy period of time, you may consider a lease extension sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease becomes disproportionately more expensive notably when there are less than 80 years remaining. Residents in Chelsfield with a lease drawing near to 81 years left should seriously consider extending it without delay. When a lease has less than 80 years left, under the relevant legislation the freeholder can calculate and charge a larger amount, based on a technical computation, strangely termed as “marriage value” which is due.
Leasehold properties in Chelsfield with in excess of 100 years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Regardless of whether you are a tenant or a freeholder in Chelsfield,the lease extension solicitors that we work with will always be happy 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.
Last October Riley, started to get near to the eighty-year mark with the lease on his purpose- built apartment in Chelsfield. In buying his home two decades ago, the length of the lease was of no bearing. As luck would have it, he recognised he would soon be paying an inflated amount for a lease extension. Riley extended the lease just in the nick of time in June. Riley and the freeholder via the management company eventually settled on a premium of £5,500 . If the lease had dipped below 80 years, the sum would have escalated by a minimum £925.
Last April we were phoned by Mr and Mrs. R Martin , who was assigned a lease of a one bedroom apartment in Chelsfield in February 1997. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be for a 90 year lease extension. Identical homes in Chelsfield with a long lease were worth £198,800. The average amount of ground rent was £55 billed every twelve months. The lease ran out on 9 November 2079. Given that there were 55 years as a residual term we approximated the premium to the landlord to extend the lease to be within £33,300 and £38,400 plus legals.
An example of a Lease Extension decision 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 remaining number of years on the lease was 50.57 years.