Owning a flat usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. The lease will ordinarily be granted for a fixed period of time , ordinarily 99 or 125 years, although we have witnessed longer and shorter terms in Chadderton. Inevitably, the period of lease remaining shortens as time goes by. This is often overlooked and only raises itself as an issue when the flat or house needs to be sold or re-mortgaged. The fewer the years remaining the less it is worth and the more it will cost to extend the lease. Eligible leaseholders in Chadderton have the legal entitlement to extend the lease for a further ninety years under statute. Please give careful deliberation before putting off your Chadderton lease extension. Putting off the cost now simply increases the price you will eventually have to pay to extend your lease
It is conventional wisdom that a property with in excess of 100 years remaining is worth approximately the equivalent as a freehold. Where an additional 90 years added to any lease with more than 35 years remaining, the property will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset 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. |
Using our service will provide you enhanced control over the value of your Chadderton 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.
Connor owned a conversion apartment in Chadderton being sold with a lease of a little over 61 years left. Connor informally approached his landlord a well known London-based freehold company for a lease extension. The freeholder was prepared to give an extension on non-statutory terms taking the lease to 125 years subject to a new rent initially set at £200 per annum and increase every twenty five years thereafter. No ground rent would be due on a lease extension were Connor to invoke his statutory right. Connor obtained expert advice and was able to make an informed decision and deal with the matter and sell the property.
Dr I Michel completed a ground floor apartment in Chadderton in July 2011. We are asked if we could shed any light on how much (roughly) price would likely be to prolong the lease by ninety years. Comparable residencies in Chadderton with a long lease were worth £210,600. The mid-range ground rent payable was £45 invoiced monthly. The lease ended in 2088. Having 62 years outstanding we calculated the compensation to the freeholder to extend the lease to be within £18,100 and £20,800 not including fees.
Mrs Sarah Patel completed a purpose-built flat in Chadderton in February 2003. The question was if we could approximate the premium could be for a 90 year extension to my lease. Comparable flats in Chadderton with an extended lease were in the region of £265,000. The mid-range amount of ground rent was £50 billed per annum. The lease expired on 15 January 2099. Considering the 73 years left we approximated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 not including costs.