There is no doubt about it a leasehold property in Choppington is a wasting asset as a result of the shortening lease. If the residual term has, beyond 100 years to run then this decrease may be negligible however there will become a point in time when a lease has less than 80 years unexpired as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the main reason why you should extend the lease sooner as opposed to later. Most flat owners in Choppington will qualify for this right; that being said a conveyancer should be able to confirm whether you are eligible for a lease extension. In certain situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
Leasehold properties in Choppington with more than 100 years unexpired on the lease are sometimes referred to as ‘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 to be gained by purchasing the reversionary interest unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
The lawyers that we work with procure Choppington 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 conveyancer we work with provide it.
In recent months Matthew, came perilously near to the eighty-year threshold with the lease on his one bedroom flat in Choppington. Having bought his flat 18 years ago, the lease term was of minimal importance. Luckily, he realised he needed to take steps soon on a lease extension. Matthew extended the lease at the eleventh hour in September. Matthew and the landlord ultimately settled on the final figure of £5,000 . If he failed to meet the deadline, the premium would have escalated by a minimum £1,050.
In 2012 we were approached by Mr and Mrs. E Ramírez who, having owned a one bedroom flat in Choppington in November 1997. The question was if we could shed any light on how much (approximately) price could be for a 90 year lease extension. Identical premises in Choppington with a long lease were valued around £300,000. The mid-range amount of ground rent was £50 billed yearly. The lease elapsed in 2102. Having 76 years unexpired we calculated the premium to the freeholder to extend the lease to be between £8,600 and £9,800 exclusive of expenses.
Mrs Leah Bertrand bought a one bedroom apartment in Choppington in April 1995. We are asked if we could estimate the price would likely be for a 90 year lease extension. Identical properties in Choppington with 100 year plus lease were valued around £252,800. The mid-range amount of ground rent was £65 invoiced every twelve months. The lease concluded in 2091. Given that there were 65 years unexpired we approximated the compensation to the landlord to extend the lease to be within £18,100 and £20,800 exclusive of professional charges.