Chislehurst leases on residential deteriorating in value. Where your lease has approximately ninety years remaining, you should start thinking about a lease extension. If lease term falls under eighty years, you will then have to pay 50% of the property's 'marriage value' in addition to the usual cost of the lease extension to your landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Leasehold owners in Chislehurst will usually qualify for a lease extension; however It would be wise to check with a lawyer to confirm your eligibility. In some cases you may not be entitled. There are prescribed timetables and formalities to comply with once the process has started so it’s best to be guided by a lawyer during the process.
It is generally considered 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 premises will be equivalent in value to a freehold for many years ahead.
| 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Irrespective of whether you are a tenant or a freeholder in Chislehurst,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Chislehurst valuers.
Charlie was the the leasehold proprietor of a studio flat in Chislehurst on the market with a lease of just over sixty years left. Charlie informally spoke with his freeholder a well known London-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of an increased rent to £200 annually. Ordinarily, ground rent would not be due on a lease extension were Charlie to exercise his statutory right. Charlie procured expert advice and secured an acceptable deal informally and sell the property.
Last Christmas we were approach by Mrs R Rogers , who took over the lease of a garden apartment in Chislehurst in June 2009. The question was if we could approximate the premium would be to extend the lease by 90 years. Similar properties in Chislehurst with a long lease were worth £267,600. The mid-range amount of ground rent was £65 collected quarterly. The lease finished in 2091. Given that there were 67 years left we approximated the premium to the freeholder for the lease extension to be between £14,300 and £16,400 exclusive of professional charges.
An example of a Lease Extension decision for a Chislehurst flat is 70 Andace Park Gardens 133-149 Widmore Road in November 2013. Tribunal determined that the premium payable for the lease extension was £10,052 This case affected 1 flat. The unexpired term as at the valuation date was 72 years.