The rule of thumb is, all other things holding equal, the shorter the lease the more costly the premium. Qualifying leaseholders in Chirk have the legal entitlement to extend the lease for an additional 90 years under statute. Do give careful consideration before delaying your Chirk lease extension. Postponing the costs today simply increases the price you will ultimately have to pay to extend the lease.
It is conventional wisdom that a residential leasehold with more than one hundred years unexpired lease term is worth roughly the same as a freehold. Where an further ninety years added to all but the shortest lease, the property will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset 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. |
Engaging our service will provide you better control over the value of your Chirk leasehold, as your property will be more valuable and marketable in respect 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.
Last October Jake, came dangerously near to the 80-year mark with the lease on his purpose- built apartment in Chirk. Having purchased his flat twenty years ago, the lease term was of minimal relevance. Luckily, he realised he would soon be paying an escalated premium for a lease extension. Jake extended the lease just under the wire last January. Jake and the landlord in the end settled on a premium of £5,500 . If he had missed the deadline, the sum would have increased by a minimum £850.
Last Spring we were approach by Mr and Mrs. D Martin , who bought a ground floor flat in Chirk in January 1995. The question was if we could shed any light on how much (approximately) compensation to the landlord would be for a ninety year lease extension. Similar flats in Chirk with a long lease were worth £245,000. The mid-range ground rent payable was £45 collected every twelve months. The lease concluded on 14 November 2094. Considering the 68 years as a residual term we estimated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 plus costs.
Last Spring we were called by Dr S Davies , who purchased a recently refurbished apartment in Chirk in February 1995. We are asked if we could shed any light on how much (approximately) compensation to the landlord would likely be to extend the lease by a further 90 years. Similar homes in Chirk with a long lease were valued about £285,000. The mid-range amount of ground rent was £55 collected per annum. The lease finished in 2105. Given that there were 79 years unexpired we approximated the premium to the landlord to extend the lease to be between £13,300 and £15,400 exclusive of costs.