Chadderton leases on residential properties are gradually losing value. Where your lease has approximately 90 years unexpired, you should start considering the need for a lease extension. An important point to note is that it is desirable for the lease extension to be in place before the term of the current lease dips under eighty years - otherwise a higher amount will be due. Leasehold owners in Chadderton will mostly qualify for a lease extension; however It would be wise to check with a lawyer to check your eligibility. In certain situations you may not qualify. There are also strict timetables and formalities to follow once the process has started so it’s wise to be guided by a lawyer during the process.
Leasehold residencies in Chadderton with in excess of 100 years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Barnsley Building Society | |
| Leeds Building Society | |
| National Westminster Bank | |
| Royal Bank of Scotland |
The conveyancers that we work with procure Chadderton lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
Last year David, started to get near to the eighty-year threshold with the lease on his purpose- built flat in Chadderton. Having purchased his property 19 years ago, the unexpired term was of little importance. Thankfully, he realised he would imminently be paying an escalated premium for a lease extension. David extended the lease just under the wire last August. David and the freeholder via the managing agents in the end agreed on a premium of £5,000 . If the lease had dipped below eighty years, the amount would have become more costly by a minimum £875.
Last Spring we were e-mailed by Mr V Hall , who was assigned a lease of a garden apartment in Chadderton in April 2004. We are asked if we could estimate the premium would likely be to prolong the lease by 90 years. Similar flats in Chadderton with a long lease were worth £260,000. The mid-range ground rent payable was £50 billed yearly. The lease came to a finish on 11 September 2098. Given that there were 72 years as a residual term we approximated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 exclusive of professional charges.
Mr and Mrs. A Fournier completed a studio flat in Chadderton in March 2006. We are asked if we could estimate the price would be to prolong the lease by a further 90 years. Comparative properties in Chadderton with 100 year plus lease were worth £261,600. The average amount of ground rent was £60 billed annually. The lease lapsed in 2078. Given that there were 52 years left we calculated the premium to the landlord to extend the lease to be between £39,000 and £45,000 exclusive of costs.