When it comes to domestic leasehold property in Chadderton, you are actually purchasing a right to live in a property for a set period of time. In recent years flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned as this seems like a lengthy period of time, you should consider a lease extension sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease gets disproportionately more expensive especially once there are fewer than 80 years left. Leasehold owners in Chadderton with a lease drawing near to 81 years remaining should seriously think of extending it as soon as possible. When a lease has fewer than 80 years remaining, under the relevant Act the landlord can calculate and demand a greater amount, assessed on a technical calculation, known as “marriage value” which is due.
Leasehold premises in Chadderton with in excess of 100 years unexpired on the lease are often regarded as a ‘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 estate charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| 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 also be not less than 75 years at the outset of the mortgage. |
Lease extensions in Chadderton can be a difficult process. We recommend you secure guidance from a conveyancing solicitor 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.
James owned a conversion flat in Chadderton being marketed with a lease of fraction over fifty eight years left. James on an informal basis approached his freeholder a well known London-based freehold company for a lease extension. The freeholder was prepared to grant an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £50 per annum. Ordinarily, ground rent would not be payable on a lease extension were James to invoke his statutory right. James obtained expert advice and was able to make an informed judgement and handle with the matter and ending up with a market value flat.
Mr and Mrs. W Pérez owned a purpose-built flat in Chadderton in January 1996. We are asked if we could shed any light on how much (roughly) price could be for a 90 year lease extension. Identical residencies in Chadderton with an extended lease were in the region of £173,800. The mid-range amount of ground rent was £60 invoiced quarterly. The lease expired on 13 March 2080. Taking into account 55 years remaining we estimated the compensation to the freeholder for the lease extension to be within £31,400 and £36,200 not including fees.
In 2012 we were contacted by Mrs O Wood who, having moved into a purpose-built flat in Chadderton in October 1999. The dilemma was if we could approximate the premium would be to extend the lease by 90 years. Comparable homes in Chadderton with 100 year plus lease were worth £235,200. The average ground rent payable was £45 invoiced yearly. The lease elapsed in 2091. Taking into account 66 years remaining we approximated the premium to the landlord for the lease extension to be within £12,400 and £14,200 exclusive of expenses.