With a long leasehold property in Chadderton, you effectively rent it for a certain amount of time. These days flat leases typically tend to be for 99 years or 125. Even though this may appear like a long period of time, you may consider a lease extension sooner rather than later. The general rule is that the shorter the number of years is the cost of extending the lease gets disproportionately more expensive notably once there are fewer than eighty years left. Anyone in Chadderton with a lease drawing near to 81 years remaining should seriously consider extending it as soon as possible. When a lease has fewer than eighty years remaining, under the current legislation the freeholder is entitled to calculate and levy a larger amount, based on a technical computation, strangely termed as “marriage value” which is due.
Leasehold properties in Chadderton with more than 100 years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Godiva Mortgages | |
| Halifax | |
| Skipton Building Society | |
| The Mortgage Works |
Irrespective of whether you are a tenant or a freeholder in Chadderton,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Chadderton valuers.
Following lengthy negotiations with the freeholder of her two bedroom flat in Chadderton, Rachel commenced the lease extension process as the eighty year threshold was rapidly coming. The legal work was finalised in March 2013. The freeholder’s charges were restricted to below 600 GBP.
Last Christmas we were contacted by Ms Francesca Flores , who owned a ground floor apartment in Chadderton in November 1996. The question was if we could approximate the price could be for a ninety year extension to my lease. Comparative flats in Chadderton with a long lease were in the region of £264,000. The average amount of ground rent was £60 collected per annum. The lease termination date was on 7 January 2079. Having 53 years left we calculated the premium to the landlord for the lease extension to be between £37,100 and £42,800 exclusive of fees.
In 2010 we were phoned by Mrs B Clark who, having owned a purpose-built flat in Chadderton in February 2004. The dilemma was if we could estimate the price could be to prolong the lease by ninety years. Comparable premises in Chadderton with 100 year plus lease were in the region of £225,400. The average amount of ground rent was £45 invoiced per annum. The lease ended in 2090. Given that there were 64 years unexpired we calculated the compensation to the freeholder for the lease extension to be between £15,200 and £17,600 plus legals.