The value of Chalk Farm leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of a lease extension can escalate substantially once the unexpired lease term is below than eighty years
Leasehold premises in Chalk Farm with over 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 buying the reversionary interest unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Chelsea 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. |
| Godiva Mortgages | 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Retaining our service will provide you better control over the value of your Chalk Farm leasehold, as your property will be more valuable and saleable in respect of lease length should you decide to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Trailing protracted correspondence with the freeholder of her two bedroom flat in Chalk Farm, Hannah initiated the lease extension process as the eighty year threshold was rapidly coming. The transaction completed in September 2007. The landlord’s fees were kept to an absolute minimum.
Last year we were approach by Mr and Mrs. L Rogers , who purchased a first floor flat in Chalk Farm in May 1999. The dilemma was if we could estimate the price would likely be to extend the lease by ninety years. Similar homes in Chalk Farm with 100 year plus lease were in the region of £196,400. The average amount of ground rent was £55 invoiced monthly. The lease terminated on 12 July 2079. Considering the 54 years outstanding we estimated the premium to the freeholder to extend the lease to be within £35,200 and £40,600 exclusive of expenses.
An example of a Lease Extension matter before the tribunal for a Chalk Farm residence is Flat 2 27 Mackeson Road in December 2012. The Tribunal assessed the value of the lease extension premium at £35,435 and rounded the figure to £35,500 This case related to 1 flat. The unexpired term was 64.77 years.