It’s a harsh certainty that a Chadderton residential lease is a deteriorating asset. As the lease term reduces so does the value of the property. The extent of this is taken for granted in the first few years due to the deflation being disguised by increases in the Chadderton property prices.Where your lease has approximately 90 years left, you should start thinking about a lease extension. If the number of years remaining slips under eighty years, you will end up paying 50% of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add the property Most leasehold owners in Chadderton will be able to extend under the legislation; however a conveyancer should be able to clarify whether you qualify for an extension. In some situations you may not qualify. There are also strict deadlines and procedures to follow once the process is instigated and you will need to be guided by your conveyancing solicitor for the duration of the process.
It is generally accepted that a property with over 100 years remaining is worth approximately the equivalent as a freehold. Where an additional ninety years added to any lease with more than 30 years unexpired, the property will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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 |
Lease extensions in Chadderton can be a difficult process. We recommend you secure professional help from a conveyancing solicitor and surveyor well versed in the legislation and lease extension process.
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 in-depth market knowledge 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.
Subsequent to protracted negotiations with the freeholder of her two bedroom flat in Chadderton, Katie commenced the lease extension process as the 80 year deadline was fast advancing. The legal work was concluded in July 2015. The landlord’s costs were restricted to a tad over 450 GBP.
Mr and Mrs. U François purchased a ground floor flat in Chadderton in January 2009. We are asked if we could shed any light on how much (roughly) price would likely be to extend the lease by an additional years. Comparable properties in Chadderton with 100 year plus lease were in the region of £275,000. The mid-range amount of ground rent was £55 billed yearly. The lease lapsed in 2101. Given that there were 76 years as a residual term we approximated the premium to the landlord to extend the lease to be within £9,500 and £11,000 plus expenses.
Last May we were called by Mr and Mrs. H André , who acquired a recently refurbished flat in Chadderton in March 1996. We are asked if we could estimate the price would likely be to extend the lease by an additional years. Comparable properties in Chadderton with a long lease were valued around £176,200. The mid-range ground rent payable was £65 billed quarterly. The lease expired on 2 January 2081. Having 56 years remaining we approximated the compensation to the landlord to extend the lease to be within £29,500 and £34,000 plus fees.