With a domestic leasehold property in Chadderton, you are actually buying an entitlement to reside in a property for a set period of time. Modern flat leases typically tend to be for 99 years or 125. Even though this may appear like a long period of time, you should consider a lease extension sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease increases markedly particularly once there are less than eighty years remaining. Residents in Chadderton with a lease approaching 81 years unexpired should seriously consider extending it as soon as possible. Once a lease has below eighty years left, under the current legislation the freeholder can calculate and demand a greater amount, based on a technical calculation, known as “marriage value” which is due.
It is generally considered that a residential leasehold with in excess of 100 years unexpired lease term is worth approximately the same as a freehold. Where an further 90 years added to any lease with more than 35 years remaining, the residence will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Engaging our service gives you increased control over the value of your Chadderton leasehold, as your property will be more valuable and saleable in respect of lease length should you wish to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Trailing protracted correspondence with the freeholder of her ground floor flat in Chadderton, Alisha commenced the lease extension process as the 80 year threshold was swiftly approaching. The legal work was finalised in September 2007. The landlord’s fees were negotiated to under 450 GBP.
Last Spring we were e-mailed by Dr E Thomas , who owned a studio flat in Chadderton in July 2006. The question was if we could estimate the price would likely be to prolong the lease by a further 90 years. Comparative flats in Chadderton with 100 year plus lease were worth £260,000. The mid-range amount of ground rent was £50 invoiced quarterly. The lease termination date was on 13 October 2096. Taking into account 71 years outstanding we approximated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 not including costs.
Mr Connor Cooper owned a first floor apartment in Chadderton in March 2002. We are asked if we could shed any light on how much (approximately) compensation to the landlord would likely be to prolong the lease by an additional years. Comparable residencies in Chadderton with a long lease were in the region of £254,200. The mid-range amount of ground rent was £60 invoiced yearly. The lease expired in 2076. Given that there were 51 years as a residual term we approximated the compensation to the landlord to extend the lease to be within £43,700 and £50,600 plus legals.