Chirk leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease becomes more expensive. The majority of owners of residential leasehold property in Chirk enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Chirk you would be well advised to investigate if your lease has between seventy and 90 years remaining. In particular once the remaining lease term slips under 80 years, the cost of any lease extension sharply increases as part of the premium you pay is what is known as a marriage value
Leasehold properties in Chirk with in excess of one hundred years left 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 property. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Barclays plc | |
| Birmingham Midshires | |
| Coventry Building Society | |
| TSB |
Regardless of whether you are a tenant or a landlord in Chirk,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Chirk valuers.
After protracted correspondence with the landlord of her two bedroom flat in Chirk, Madeleine started the lease extension process just as the lease was approaching the crucial eighty-year deadline. The transaction completed in October 2012. The freeholder’s fees were kept to an absolute minimum.
In 2011 we were e-mailed by Mr and Mrs. M Allen who, having took over the lease of a studio apartment in Chirk in October 1999. The dilemma was if we could shed any light on how much (approximately) premium would likely be for a ninety year extension to my lease. Comparable properties in Chirk with 100 year plus lease were in the region of £176,200. The mid-range amount of ground rent was £65 collected annually. The lease concluded in 2082. Considering the 56 years outstanding we approximated the compensation to the freeholder to extend the lease to be between £29,500 and £34,000 not including legals.
In 2009 we were phoned by Mr H Thompson who, having bought a studio flat in Chirk in February 1997. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be for a 90 year lease extension. Similar premises in Chirk with an extended lease were in the region of £237,600. The average ground rent payable was £45 invoiced per annum. The lease terminated in 2093. Given that there were 67 years remaining we approximated the premium to the freeholder for the lease extension to be between £11,400 and £13,200 plus fees.