The re-sale value of a leasehold property in Chessington depends on how long the lease has left to run. If it is near to or less than 80 years you should anticipate difficulties on re-sale, so it is recommended to arrange for a lease extension prior to purchasing. It is preferable to commence the lease extension process when the lease still has 82 years to run so that formalities can be concluded ahead of the eighty year mark. Leasehold Reform legislation entitles Chessington qualifying lessees to a 90 year extension added to their remaining lease term (ie if your lease has 50 years remaining the statutory lease extension will provide a new term of 140 years). The intention of the valuation is to determine the amount payable by the lessee to the freeholder for the acquisition of the lease extension.
Leasehold premises in Chessington with more than 100 years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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; |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Yorkshire Building Society | 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. |
Irrespective of whether you are a tenant or a landlord in Chessington,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Chessington valuers.
Following unsuccessful discussions with the freeholder of her garden apartment in Chessington, Amber commenced the lease extension process just as her lease was nearing the critical 80-year threshold. The lease extension completed in September 2014. The freeholder’s costs were negotiated to less than 550 pounds.
Last Summer we were called by Mr and Mrs. C King , who was assigned a lease of a basement apartment in Chessington in June 2005. We are asked if we could shed any light on how much (roughly) compensation to the landlord would likely be for a 90 year extension to my lease. Comparative properties in Chessington with an extended lease were in the region of £265,000. The average ground rent payable was £50 collected quarterly. The lease ended on 20 April 2099. Considering the 73 years outstanding we estimated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 plus expenses.
An example of a Lease Extension case for a Chessington premises 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.