The re-sale value of a leasehold property in Chorlton is impacted by how long the lease has remaining. If it is near to or less than eighty years you should anticipate problems on re-sale, so it is recommended to arrange for the lease to be extended ahead of purchasing. Ideally one should start the lease extension process when a lease still has 82 years remaining so that all matters can be addressed prior to the eighty year mark. Statute entitles Chorlton qualifying lessees to acquire a new lease which will be for the balance of the existing lease plus an additional term of ninety years. The intention of the valuation is to determine the sum payable by the lessee to the freeholder for the acquisition of the lease extension.
Leasehold properties in Chorlton with over 100 years left on the lease are sometimes referred to as ‘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 to be gained by buying the reversionary interest unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Chorlton can be a difficult process. We recommend you secure guidance from a lawyer 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 procuring Chorlton lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
After lengthy negotiations with the landlord of her studio apartment in Chorlton, Ellie started the lease extension process as the 80 year threshold was quickly nearing. The legal work was concluded in June 2011. The landlord’s fees were kept to an absolute minimum.
Last year we were called by Mr and Mrs. L Garcia , who completed a recently refurbished apartment in Chorlton in July 2009. We are asked if we could shed any light on how much (approximately) compensation to the landlord would likely be to prolong the lease by an additional years. Similar premises in Chorlton with a long lease were in the region of £260,000. The mid-range ground rent payable was £50 invoiced per annum. The lease concluded in 2097. Taking into account 72 years as a residual term we estimated the compensation to the freeholder to extend the lease to be between £9,500 and £11,000 exclusive of professional charges.
In 2010 we were phoned by Mr Matthew Martinez who, having acquired a one bedroom apartment in Chorlton in January 2000. We are asked if we could estimate the premium would be for a ninety year extension to my lease. Similar flats in Chorlton with a long lease were valued about £256,600. The mid-range ground rent payable was £60 invoiced quarterly. The lease concluded on 2 August 2077. Having 52 years left we estimated the premium to the freeholder to extend the lease to be within £41,800 and £48,400 plus fees.