Chadderton leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease gets more expensive. It is the case that most Chadderton tenants have the right to extend their lease by an additional ninety years by virtue of the 1993 Leasehold Reform Act. Where you are a leasehold owner in Chadderton you must investigate if your lease has between 70 and ninety years left. There are good reasons why a Chadderton flat owner with a lease having around eighty years left should take steps to make sure that a lease extension is actioned without delay
It is generally accepted that a residential leasehold with over one hundred years remaining is worth roughly the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the premises will be worth the same as a freehold for many years in the future.
| 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Coventry Building Society | 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. |
| 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. |
Lease extensions in Chadderton can be a difficult process. We recommend you secure guidance from a conveyancer and valuer 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.
In the wake of 6 months of unsuccessful correspondence with the landlord of her first floor apartment in Chadderton, Natasha initiated the lease extension process just as the lease was nearing the crucial 80-year deadline. The lease extension was concluded in November 2005. The landlord’s charges were negotiated to approximately 650 GBP.
Last Summer we were contacted by Mr and Mrs. U Wright , who acquired a ground floor flat in Chadderton in August 2003. The question was if we could approximate the premium could be for a ninety year extension to my lease. Identical premises in Chadderton with a long lease were in the region of £225,400. The average amount of ground rent was £45 invoiced per annum. The lease lapsed in 2090. Taking into account 64 years left we calculated the premium to the landlord to extend the lease to be between £15,200 and £17,600 exclusive of legals.
In 2009 we were called by Mr and Mrs. L Gómez who, having owned a one bedroom apartment in Chadderton in July 1995. We are asked if we could shed any light on how much (roughly) premium could be for a 90 year extension to my lease. Identical homes in Chadderton with an extended lease were worth £270,000. The mid-range ground rent payable was £55 collected quarterly. The lease expired on 24 August 2101. Taking into account 75 years unexpired we approximated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 not including fees.