Chadderton leases on residential deteriorating in value. Where your lease has in the region of ninety years remaining, you should start thinking about a lease extension. 80 years is a significant number: when the unexpired term of a lease drops below this level then you begin incurring an additional element called marriage value. Leasehold owners in Chadderton will usually qualify for a lease extension; however a solicitor will check your eligibility. In certain circumstances you may not qualify. There are also strict timetables and steps to follow once the process is initiated so it’s prudent to be guided by a conveyancer during the process.
It is conventional wisdom that a residential leasehold with over 100 years remaining is worth roughly the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be equivalent in value to 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. |
| Chelsea Building Society | 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. |
| 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Engaging our service gives you better control over the value of your Chadderton leasehold, as your property will be more valuable and marketable in respect of lease length should you want to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
In 2014 Jake, started to get close to the 80-year threshold with the lease on his basement flat in Chadderton. Having purchased his flat two decades ago, the length of the lease was of no bearing. Luckily, he realised he would soon be paying an inflated amount for Extending the lease. Jake was able to extend his lease just under the wire in July. Jake and the freeholder subsequently settled on a premium of £5,500 . If he not met the deadline, the premium would have gone up by at least £1,075.
Last month we were phoned by Dr Olivia Davis , who purchased a garden apartment in Chadderton in January 2004. The dilemma was if we could approximate the price would likely be to extend the lease by a further 90 years. Comparable homes in Chadderton with 100 year plus lease were valued about £218,000. The average amount of ground rent was £45 invoiced annually. The lease concluded in 2088. Given that there were 63 years outstanding we estimated the compensation to the freeholder for the lease extension to be between £17,100 and £19,800 not including fees.
In 2013 we were contacted by Mr and Mrs. W Rose who, having completed a recently refurbished flat in Chadderton in July 2009. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord could be to extend the lease by an additional years. Comparable homes in Chadderton with a long lease were valued about £270,000. The mid-range ground rent payable was £55 collected quarterly. The lease terminated on 27 August 2099. Given that there were 74 years as a residual term we estimated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 exclusive of legals.