Chirk leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the 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. Where you are a leasehold owner in Chirk you really ought to investigate if your lease has between 70 and 90 years remaining. There are compelling reasons why a Chirk leaseholder with a lease having around eighty years unexpired should take steps to ensure that a lease extension is put in place without delay
It is conventional wisdom that a property with more than 100 years remaining is worth approximately the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the property will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Chelsea 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. |
| Coventry Building Society | 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| 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. |
The conveyancing solicitors that we work with handle Chirk lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
Jake was the the leasehold owner of a high value apartment in Chirk being marketed with a lease of fraction over 72 years unexpired. Jake informally contacted his landlord a well known London-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years subject to an increased rent to £50 per annum. No ground rent would be due on a lease extension were Jake to invoke his statutory right. Jake procured expert legal guidance and secured an acceptable resolution without resorting to tribunal and sell the flat.
In 2011 we were e-mailed by Mr and Mrs. I David who, having completed a garden flat in Chirk in May 2012. The dilemma was if we could estimate the compensation to the landlord would be to extend the lease by ninety years. Comparative premises in Chirk with an extended lease were worth £203,200. The average ground rent payable was £65 billed per annum. The lease concluded on 26 April 2087. Having 61 years outstanding we calculated the premium to the landlord for the lease extension to be between £19,000 and £22,000 not including costs.
Last Summer we were called by Mr R Moore , who bought a basement flat in Chirk in November 2009. We are asked if we could estimate the premium could be to prolong the lease by an additional years. Similar properties in Chirk with an extended lease were valued around £260,000. The average amount of ground rent was £50 billed every twelve months. The lease expired on 8 November 2098. Given that there were 72 years left we estimated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 exclusive of expenses.