Chances are that if you own a flat in Chorlton you actually own a long leasehold interest over your property
Leasehold residencies in Chorlton with in excess of 100 years remaining 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 situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate charges justify it.
Lender | Requirement |
---|---|
Bank of Scotland | Minimum 70 years from the date of the mortgage. |
Halifax | Minimum 70 years from the date of the mortgage. |
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 |
TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Retaining our service gives you increased control over the value of your Chorlton leasehold, as your property will be more valuable and saleable in terms of lease length should you decide to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
16 months ago Jackson, started to get near to the 80-year threshold with the lease on his one bedroom apartment in Chorlton. In buying his home two decades ago, the unexpired term was of little importance. Fortunately, he became aware that he would imminently be paying an inflated amount for a lease extension. Jackson arranged for a lease extension just in the nick of time in May. Jackson and the freeholder via the managing agents subsequently agreed on sum of £5,000 . If the lease had gone below 80 years, the amount would have become more costly by at least £1,000.
Mrs Elizabeth Garcia completed a newly refurbished flat in Chorlton in April 2006. We are asked if we could estimate the compensation to the landlord would be for a ninety year extension to my lease. Comparable homes in Chorlton with a long lease were valued around £227,800. The average amount of ground rent was £45 billed annually. The lease end date was on 20 October 2089. Taking into account 65 years remaining we approximated the premium to the landlord to extend the lease to be within £13,300 and £15,400 not including expenses.
Dr L Campbell bought a first floor apartment in Chorlton in September 1999. The question was if we could shed any light on how much (approximately) premium would likely be to extend the lease by an additional years. Identical properties in Chorlton with a long lease were worth £275,000. The average amount of ground rent was £55 invoiced per annum. The lease end date was on 3 October 2100. Having 76 years left we estimated the premium to the freeholder to extend the lease to be within £9,500 and £11,000 plus fees.