When it comes to long leasehold property in Chorley and Eccleston, you effectively rent it for a certain period of time. These days flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned as this seems like a long period of time, you should consider a lease extension sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease gets disproportionately greater especially once there are fewer than eighty years remaining. Residents in Chorley and Eccleston with a lease nearing 81 years unexpired should seriously think of extending it without delay. When the lease term has below 80 years remaining, under the relevant legislation the landlord can calculate and levy a greater amount, assessed on a technical computation, strangely termed as “marriage value” which is due.
Leasehold premises in Chorley and Eccleston with more than one hundred years remaining 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 situations there is often little to be gained by purchasing the freehold unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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; |
| Godiva Mortgages | 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. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Chorley and Eccleston can be a difficult process. We recommend you procure guidance from a lawyer and valuer with experience in this area.
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 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.
18 months ago Eliot, came precariously near to the eighty-year mark with the lease on his purpose- built apartment in Chorley and Eccleston. Having bought his home 19 years ago, the unexpired term was of little significance. Fortunately, he recognised he would imminently be paying an escalated premium for a lease extension. Eliot arranged for a lease extension just ahead of time last January. Eliot and the landlord who owned the flat above subsequently agreed on the final figure of £5,000 . If the lease had dropped lower than eighty years, the sum would have become more exhorbitant by at least £925.
Last April we were phoned by Mr and Mrs. M Collins , who took over the lease of a one bedroom apartment in Chorley and Eccleston in July 2006. The question was if we could approximate the premium would be to prolong the lease by ninety years. Identical flats in Chorley and Eccleston with an extended lease were worth £205,000. The mid-range ground rent payable was £50 collected yearly. The lease finished in 2104. Given that there were 79 years as a residual term we calculated the compensation to the freeholder for the lease extension to be between £8,600 and £9,800 plus legals.
In 2012 we were e-mailed by Mr and Mrs. F Davies who, having owned a first floor apartment in Chorley and Eccleston in May 1997. We are asked if we could estimate the compensation to the landlord could be to prolong the lease by 90 years. Comparable residencies in Chorley and Eccleston with 100 year plus lease were valued about £275,000. The mid-range amount of ground rent was £65 collected quarterly. The lease expired on 7 May 2093. Having 68 years outstanding we calculated the compensation to the freeholder to extend the lease to be between £12,400 and £14,200 plus expenses.