With a residential leasehold premises in Chapeltown, you are in fact renting it for a certain amount of time. Modern flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you should consider extending the lease sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease becomes disproportionately more expensive particularly once there are fewer than eighty years left. Leasehold owners in Chapeltown with a lease nearing 81 years unexpired should seriously consider extending it without delay. Once a lease has less than 80 years outstanding, under the relevant Act the freeholder is entitled to calculate and charge a larger premium, based on a technical calculation, strangely termed as “marriage value” which is payable.
It is generally considered that a property with more than one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an further 90 years added to any lease with more than 45 years remaining, the residence will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Godiva Mortgages | 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. |
| Leeds Building Society | 85 years remaining from the start 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. |
Using our service will provide you increased control over the value of your Chapeltown leasehold, as your property will be more valuable and marketable in terms of lease length should you decide to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Kyle owned a 2 bedroom apartment in Chapeltown on the market with a lease of a few days over fifty eight years left. Kyle on an informal basis approached his freeholder being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years on the basis of a rise in the rent to £200 per annum. Ordinarily, ground rent would not be payable on a lease extension were Kyle to invoke his statutory right. Kyle obtained expert legal guidance and secured satisfactory resolution informally and readily saleable.
In 2009 we were phoned by Ms Abbie Lefebvre who, having bought a purpose-built flat in Chapeltown in March 2006. The question was if we could estimate the price could be to prolong the lease by ninety years. Identical residencies in Chapeltown with an extended lease were in the region of £290,000. The average amount of ground rent was £45 billed every twelve months. The lease expired on 20 August 2098. Having 73 years as a residual term we estimated the premium to the landlord for the lease extension to be within £9,500 and £11,000 exclusive of costs.
Ms K Dupont completed a first floor apartment in Chapeltown in March 1996. We are asked if we could approximate the premium would likely be for a 90 year lease extension. Similar residencies in Chapeltown with an extended lease were worth £240,600. The average ground rent payable was £60 collected annually. The lease elapsed on 21 July 2087. Given that there were 62 years outstanding we estimated the compensation to the freeholder for the lease extension to be between £21,900 and £25,200 not including fees.