On the balance of probabilities where you own a flat in Chorley you actually own a long leasehold interest over your property
Leasehold properties in Chorley with over 100 years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and maintenance charges merit it.
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Yorkshire 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. |
The conveyancers that we work with procure Chorley lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
Half a year ago Jason, came very close to the 80-year threshold with the lease on his basement flat in Chorley. In buying his property two decades ago, the unexpired term was of minimal interest. Fortunately, he realised he needed to take action soon on a lease extension. Jason extended the lease at the eleventh hour in March. Jason and the landlord who owned the flat above subsequently settled on sum of £5,500 . If he not met the deadline, the figure would have increased by a minimum £950.
In 2011 we were e-mailed by Mr and Mrs. Y Walker who, having bought a one bedroom flat in Chorley in April 2008. We are asked if we could approximate the compensation to the landlord could be to prolong the lease by ninety years. Comparable homes in Chorley with an extended lease were in the region of £216,000. The mid-range amount of ground rent was £60 billed per annum. The lease came to a finish in 2082. Taking into account 58 years left we approximated the premium to the freeholder for the lease extension to be within £28,500 and £33,000 plus fees.
Mr H Bennett was assigned a lease of a studio apartment in Chorley in July 1996. We are asked if we could approximate the premium could be for a 90 year lease extension. Similar properties in Chorley with a long lease were in the region of £205,000. The mid-range ground rent payable was £50 collected per annum. The lease came to a finish on 8 May 2102. Having 78 years unexpired we approximated the premium to the freeholder for the lease extension to be between £7,600 and £8,800 exclusive of professional charges.