The market value of a leasehold property in Chorley and Eccleston is impacted by how many years the lease has remaining. If it is close to or fewer than 80 years you should envisage problems on re-sale, so it is advisable to arrange for the lease to be extended prior to purchasing. It is preferable to start the process of extending the lease is when a lease still has 82 years remaining so that formalities can be concluded well before the 80 year cut off point. Leasehold Reform legislation entitles Chorley and Eccleston qualifying lessees to acquire a new lease which will be for the balance of the existing lease plus a supplemental term of 90 years. The reason of the valuation is to arrive at an opinion of the premium payable by the lessee to the freeholder for the purchase of the lease extension.
Leasehold properties in Chorley and Eccleston with over one hundred years remaining 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 premises. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | |
| Godiva Mortgages | |
| National Westminster Bank | |
| Santander | |
| Skipton Building Society |
Lease extensions in Chorley and Eccleston can be a difficult process. We recommend you obtain professional help from a conveyancer and surveyor with experience in lease extensions.
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 in-depth market knowledge dealing with Chorley and Eccleston lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Jamie owned a 2 bedroom flat in Chorley and Eccleston on the market with a lease of fraction over fifty eight years outstanding. Jamie on an informal basis approached his landlord being a well known Manchester-based freehold company for a lease extension. The freeholder was prepared to grant an extension on non-statutory terms taking the lease to 125 years subject to a new rent initially set at £100 per annum and increase every 25 years thereafter. No ground rent would be payable on a lease extension were Jamie to exercise his statutory right. Jamie procured expert legal guidance and secured satisfactory deal without resorting to tribunal and sell the property.
Mr and Mrs. Y Moore owned a one bedroom flat in Chorley and Eccleston in August 2010. The question was if we could approximate the price would likely be for a 90 year lease extension. Comparative flats in Chorley and Eccleston with a long lease were in the region of £216,000. The mid-range ground rent payable was £60 invoiced per annum. The lease ended on 14 February 2084. Having 58 years unexpired we approximated the compensation to the freeholder to extend the lease to be within £28,500 and £33,000 not including expenses.
Last month we were e-mailed by Mr Stanley Morris , who purchased a basement flat in Chorley and Eccleston in August 2003. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord would likely be for a ninety year extension to my lease. Similar residencies in Chorley and Eccleston with an extended lease were valued about £200,000. The average amount of ground rent was £50 billed quarterly. The lease ran out in 2104. Having 78 years unexpired we calculated the compensation to the freeholder for the lease extension to be between £8,600 and £9,800 not including fees.