Chelsfield leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease becomes more expensive. Most owners of residential leasehold property in Chelsfield enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Chelsfield you must check if your lease has between 70 and ninety years remaining. There are compelling reasons why a Chelsfield flat owner with a lease having around eighty years remaining should take steps to make sure that a lease extension is effected without delay
It is generally accepted that a property with more than one hundred years unexpired lease term is worth roughly the same as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
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.
Twenty four months ago Archie, came seriously near to the eighty-year threshold with the lease on his purpose- built apartment in Chelsfield. Having purchased his flat two decades ago, the length of the lease was of minimal interest. by good luck, he realised he would soon be paying way over the odds for a lease extension. Archie extended the lease at the eleventh hour in September. Archie and the freeholder via the managing agents subsequently agreed on the final figure of £5,500 . If the lease had descended lower than 80 years, the sum would have increased by at least £1,075.
Dr C Young owned a newly refurbished apartment in Chelsfield in November 2007. The question was if we could approximate the premium would likely be for a ninety year extension to my lease. Similar premises in Chelsfield with an extended lease were worth £267,600. The average amount of ground rent was £65 collected yearly. The lease ran out in 2093. Having 67 years left we calculated the premium to the landlord to extend the lease to be between £14,300 and £16,400 not including expenses.
An example of a Lease Extension decision for a Chelsfield premises 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 related to 1 flat. The unexpired residue of the current lease was 50.57 years.