Chirk leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease gets more expensive. Legislation has been in place for sometime now allowing qualifying Chirk residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Chirk you really ought to check if your lease has between seventy and 90 years remaining. In particular once the remaining lease term slips under eighty years, the cost of any lease extension increases dramatically as an element of the premium you pay is what is known as a marriage value
It is conventional wisdom that a property with more than 100 years remaining is worth approximately the same as a freehold. Where an further 90 years added to any lease with more than 35 years left, the property will be worth the same as a freehold for decades to come.
| 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Chirk can be a difficult process. We recommend you obtain guidance from a lawyer and surveyor 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 dealing with Chirk lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Theo was the the leasehold proprietor of a conversion apartment in Chirk on the market with a lease of fraction over 61 years unexpired. Theo on an informal basis contacted his freeholder being a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years subject to a new rent to start with set at £100 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Theo to exercise his statutory right. Theo procured expert legal guidance and was able to make an informed judgement and deal with the matter and sell the flat.
Mr and Mrs. Y Jones completed a purpose-built apartment in Chirk in May 2009. The dilemma was if we could approximate the compensation to the landlord would likely be to extend the lease by 90 years. Identical premises in Chirk with 100 year plus lease were valued about £285,000. The mid-range amount of ground rent was £55 billed yearly. The lease ran out in 2106. Having 80 years remaining we approximated the compensation to the freeholder to extend the lease to be between £12,400 and £14,200 plus costs.
Last Summer we were approach by Dr N Lefèvre , who was assigned a lease of a purpose-built apartment in Chirk in April 2011. The question was if we could approximate the compensation to the landlord could be for a ninety year extension to my lease. Comparable homes in Chirk with 100 year plus lease were in the region of £200,800. The average ground rent payable was £65 collected yearly. The lease finished in 2086. Taking into account 60 years unexpired we estimated the premium to the freeholder to extend the lease to be between £20,900 and £24,200 exclusive of legals.