The only way is down when it comes to Choppington lease terms. Choppington properties that have a remaining term less than than eighty years will drop in market price at a rapid rate, and the cost of extending your lease will increase.
Leasehold properties in Choppington with over one hundred years left on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancers 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.
Hugo was the the leasehold proprietor of a studio flat in Choppington on the market with a lease of a little over 72 years remaining. Hugo informally approached his landlord a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to give an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent to start with set at £150 per annum and doubled every 25 years thereafter. No ground rent would be payable on a lease extension were Hugo to exercise his statutory right. Hugo obtained expert advice and was able to make a more informed decision and handle with the matter and ending up with a market value flat.
Dr O Rose completed a studio flat in Choppington in June 2007. The question was if we could shed any light on how much (roughly) compensation to the landlord would be to extend the lease by a further 90 years. Identical properties in Choppington with a long lease were worth £166,800. The average amount of ground rent was £50 billed per annum. The lease termination date was in 2076. Given that there were 50 years as a residual term we estimated the premium to the landlord to extend the lease to be within £32,300 and £37,400 not including professional charges.
Last February we were called by Dr Arthur Wilson , who owned a basement flat in Choppington in April 2006. The dilemma was if we could approximate the price would be for a ninety year lease extension. Comparative flats in Choppington with an extended lease were valued about £280,000. The average amount of ground rent was £45 collected per annum. The lease came to a finish on 24 February 2096. Having 70 years as a residual term we calculated the compensation to the freeholder to extend the lease to be within £12,400 and £14,200 exclusive of costs.