Choppington 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. Most owners of residential leasehold property in Choppington enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Choppington you should investigate if your lease has between seventy and ninety years remaining. In particular once the remaining lease term slips under eighty years, the premium due on any lease extension sharply increases as an element of the premium you will incur is what is known as a marriage value
Leasehold premises in Choppington with in excess of one hundred years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and maintenance charges justify it.
| 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. |
| Halifax | Minimum 70 years from the date 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. |
Lease extensions in Choppington can be a difficult process. We recommend you secure 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 a wealth of experience procuring Choppington lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Trailing unsuccessful correspondence with the landlord of her leasehold flat in Choppington, Alicia initiated the lease extension process just as the lease was nearing the critical eighty-year threshold. The lease extension completed in August 2006. The landlord’s fees were negotiated to under 500 GBP.
In 2009 we were approached by Mrs A Fournier who, having acquired a newly refurbished flat in Choppington in August 2007. The question was if we could approximate the premium would likely be to prolong the lease by a further 90 years. Similar residencies in Choppington with 100 year plus lease were worth £205,000. The mid-range amount of ground rent was £50 collected quarterly. The lease came to a finish on 16 October 2103. Considering the 78 years as a residual term we estimated the premium to the freeholder for the lease extension to be between £7,600 and £8,800 exclusive of legals.
Mr Toby Lefebvre bought a ground floor apartment in Choppington in August 2011. We are asked if we could shed any light on how much (approximately) premium could be to prolong the lease by a further 90 years. Comparable residencies in Choppington with an extended lease were worth £270,000. The average ground rent payable was £65 billed yearly. The lease came to a finish on 2 May 2093. Taking into account 68 years remaining we estimated the compensation to the landlord for the lease extension to be within £12,400 and £14,200 not including expenses.