Chances are that if you own a flat in Chesham Bois you actually own a long leasehold interest over your property
It is generally accepted that a property with over 100 years unexpired lease term is worth approximately the equivalent 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 many years in the future.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
| 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. |
| 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. |
Lease extensions in Chesham Bois can be a difficult process. We recommend you secure guidance from a conveyancing solicitor and surveyor with experience in lease extensions.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge dealing with Chesham Bois lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last October Archie, started to get close to the 80-year threshold with the lease on his leasehold apartment in Chesham Bois. In buying his flat two decades ago, the unexpired term was of no concern. Fortunately, it dawned on him that he needed to take steps soon on Extending the lease. Archie arranged for a lease extension just ahead of time in September. Archie and the freeholder subsequently settled on the final figure of £5,000 . If the lease had dropped below 80 years, the price would have increased by at least £1,075.
In 2009 we were called by Dr J Flores who, having was assigned a lease of a one bedroom apartment in Chesham Bois in August 1996. The question was if we could estimate the compensation to the landlord would likely be for a ninety year lease extension. Similar flats in Chesham Bois with 100 year plus lease were worth £176,200. The mid-range ground rent payable was £65 billed quarterly. The lease lapsed in 2080. Considering the 56 years as a residual term we estimated the premium to the landlord for the lease extension to be between £29,500 and £34,000 plus legals.
In 2012 we were phoned by Dr S Khan who, having completed a studio apartment in Chesham Bois in March 2009. We are asked if we could approximate the premium would likely be to prolong the lease by an additional years. Comparable properties in Chesham Bois with an extended lease were worth £237,600. The average ground rent payable was £45 billed yearly. The lease terminated in 2091. Considering the 67 years unexpired we estimated the premium to the landlord for the lease extension to be between £11,400 and £13,200 exclusive of costs.