For anyone whose Chapel En Le Frith property is held on a long lease, the message is clear – if you do nothing, the property will eventually revert to your landlord, leaving you empty-handed. The fewer the years remaining the lower the value of the property and the more it will cost to procure a lease extension.
Leasehold residencies in Chapel En Le Frith with in excess of 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 property. In such circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and service 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| 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. |
Lease extensions in Chapel En Le Frith can be a difficult process. We recommend you get professional help from a conveyancing solicitor and valuer with experience in this area.
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 a wealth of experience procuring Chapel En Le Frith lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last Christmas Luke, came very close to the eighty-year threshold with the lease on his garden flat in Chapel En Le Frith. Having bought his home 19 years previously, the unexpired term was of little interest. As luck would have it, he realised he needed to take steps soon on Extending the lease. Luke arranged for a lease extension just ahead of time last April. Luke and the landlord who owned the flat above eventually agreed on a premium of £6,000 . If the lease had descended to less than 80 years, the premium would have increased by a minimum £1,025.
Last Christmas we were phoned by Dr E Pérez , who bought a basement flat in Chapel En Le Frith in April 2012. We are asked if we could approximate the premium could be to extend the lease by an additional years. Similar flats in Chapel En Le Frith with a long lease were worth £166,400. The mid-range amount of ground rent was £60 collected per annum. The lease came to a finish on 24 September 2079. Given that there were 54 years as a residual term we approximated the premium to the landlord for the lease extension to be within £32,300 and £37,400 exclusive of professional charges.
In 2012 we were contacted by Mr and Mrs. C Hill who, having was assigned a lease of a basement apartment in Chapel En Le Frith in April 2009. We are asked if we could estimate the compensation to the landlord would be for a ninety year lease extension. Identical homes in Chapel En Le Frith with 100 year plus lease were valued about £227,800. The average amount of ground rent was £45 invoiced quarterly. The lease concluded in 2090. Given that there were 65 years as a residual term we estimated the compensation to the landlord to extend the lease to be within £13,300 and £15,400 plus expenses.