When it comes to residential leasehold property in Chessington, you are in fact renting it for a certain period of time. These days flat leases typically tend to be for 99 years or 125. Many leasehold owners are unconcerned as this seems like a lengthy period of time, you should think about a lease extension sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly especially when there are fewer than eighty years remaining. Anyone in Chessington with a lease approaching 81 years remaining should seriously consider extending it as soon as possible. When the lease term has under eighty years remaining, under the relevant statute the freeholder can calculate and charge a larger premium, assessed on a technical computation, known as “marriage value” which is due.
It is conventional wisdom that a residential leasehold with in excess of one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an further ninety years added to any lease with more than 35 years unexpired, the premises will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Using our service will provide you increased control over the value of your Chessington leasehold, as your property will be more valuable and marketable in terms of lease length should you decide to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Last year Tommy, started to get near to the eighty-year mark with the lease on his one bedroom flat in Chessington. Having bought his property 19 years previously, the lease term was of minimal significance. Luckily, he became aware that he needed to take steps soon on Extending the lease. Tommy arranged for a lease extension just in the nick of time in August. Tommy and the landlord who owned the flat above ultimately agreed on the final figure of £5,500 . If the lease had fallen to less than 80 years, the amount would have escalated by at least £1,050.
Last August we were e-mailed by Mr and Mrs. T Hall , who took over the lease of a ground floor apartment in Chessington in September 2003. We are asked if we could approximate the compensation to the landlord would likely be to prolong the lease by a further 90 years. Identical homes in Chessington with 100 year plus lease were worth £280,000. The mid-range ground rent payable was £55 billed annually. The lease termination date was in 2102. Taking into account 77 years remaining we approximated the premium to the freeholder for the lease extension to be between £13,300 and £15,400 plus professional charges.
An example of a Lease Extension matter before the tribunal for a Chessington residence is Flat D 15 Claremont Gardens in September 2013. TheTribunal determined in accordance with section48 and Schedule13 of the Leasehold Reform,Housing and Urban Development Act 1993 that the premium for the extended lease should be fourteen thousand one hundred and eighty seven pounds (£14,187.00) This case was in relation to 1 flat.