With a long leasehold premises in Chadderton, you are actually purchasing a right to reside in a property for a prescribed time frame. Modern flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you should think about extending the lease sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly particularly when there are fewer than eighty years remaining. Anyone in Chadderton with a lease approaching 81 years unexpired should seriously consider extending it without delay. When a lease has fewer than 80 years left, under the current legislation the freeholder can calculate and demand a greater premium, assessed on a technical computation, known as “marriage value” which is payable.
It is generally considered that a residential leasehold with in excess of one hundred years remaining is worth roughly the same as a freehold. Where an additional 90 years added to any lease with more than 30 years left, the premises will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Chadderton can be a difficult process. We recommend you obtain guidance from a lawyer and surveyor with experience in this area.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience dealing with Chadderton lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In 2014 Riley, came perilously near to the eighty-year threshold with the lease on his garden apartment in Chadderton. Having bought his property two decades ago, the length of the lease was of little relevance. Thankfully, it dawned on him that he needed to take steps soon on a lease extension. Riley was able to extend his lease just in the nick of time in April. Riley and the freeholder eventually settled on sum of £5,500 . If the lease had slipped lower than 80 years, the figure would have become more exhorbitant by a minimum £900.
Last Spring we were called by Ms Amelia Evans , who was assigned a lease of a basement flat in Chadderton in February 2004. The question was if we could estimate the premium would be for a 90 year lease extension. Similar properties in Chadderton with 100 year plus lease were in the region of £246,800. The mid-range amount of ground rent was £60 collected annually. The lease elapsed in 2076. Having 50 years outstanding we estimated the premium to the freeholder to extend the lease to be between £44,700 and £51,600 not including legals.
Last Summer we were approach by Ms Kate Moore , who took over the lease of a garden apartment in Chadderton in March 2005. The dilemma was if we could approximate the premium would likely be to extend the lease by ninety years. Comparative residencies in Chadderton with a long lease were valued about £208,200. The mid-range ground rent payable was £65 invoiced per annum. The lease lapsed on 4 June 2087. Considering the 61 years left we approximated the compensation to the freeholder to extend the lease to be within £19,000 and £22,000 not including professional charges.