On the balance of probabilities where you own a flat in Chelsfield you actually own a long leasehold interest over your property
It is generally accepted that a residential leasehold with more than 100 years remaining is worth approximately the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be equivalent in value to 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. |
| 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. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Retaining our service gives you enhanced control over the value of your Chelsfield 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 are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Two years ago Cameron, started to get near to the 80-year threshold with the lease on his purpose- built apartment in Chelsfield. Having purchased his property 19 years ago, the length of the lease was of minimal significance. Fortunately, he noticed he would soon be paying an escalated premium for Extending the lease. Cameron arranged for a lease extension just ahead of time in March. Cameron and the landlord in the end settled on the final figure of £5,000 . If he had missed the deadline, the premium would have gone up by a minimum £850.
Last November we were called by Mr and Mrs. W Ward , who acquired a first floor apartment in Chelsfield in September 2008. The question was if we could estimate the compensation to the landlord would likely be for a 90 year extension to my lease. Similar premises in Chelsfield with 100 year plus lease were worth £285,000. The average amount of ground rent was £45 collected monthly. The lease finished in 2097. Having 71 years unexpired we estimated the premium to the landlord for the lease extension to be between £12,400 and £14,200 not including legals.
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.