Chances are that where you own a flat in Chorley and Eccleston you actually own a long leasehold interest over your property
Leasehold properties in Chorley and Eccleston with in excess of 100 years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and service charges merit 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; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
The conveyancing solicitors that we work with procure Chorley and Eccleston 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.
Two years ago Teddy, started to get near to the eighty-year threshold with the lease on his basement apartment in Chorley and Eccleston. In buying his flat two decades ago, the lease term was of minimal interest. As luck would have it, he noticed he needed to take steps soon on a lease extension. Teddy arranged for a lease extension just in the nick of time in September. Teddy and the freeholder via the managing agents in the end agreed on a premium of £5,500 . If he failed to meet the deadline, the amount would have increased by a minimum £900.
Last Summer we were contacted by Mr and Mrs. E Dupont , who acquired a one bedroom flat in Chorley and Eccleston in August 2011. The question was if we could shed any light on how much (approximately) price would likely be for a 90 year lease extension. Comparative homes in Chorley and Eccleston with an extended lease were valued around £200,000. The average ground rent payable was £50 invoiced monthly. The lease terminated in 2103. Given that there were 77 years left we approximated the compensation to the landlord for the lease extension to be within £8,600 and £9,800 exclusive of fees.
In 2014 we were contacted by Dr W Martínez who, having completed a ground floor apartment in Chorley and Eccleston in June 2005. The dilemma was if we could approximate the price would be for a 90 year lease extension. Identical flats in Chorley and Eccleston with 100 year plus lease were valued around £260,200. The average ground rent payable was £65 invoiced yearly. The lease expired on 22 August 2092. Given that there were 66 years unexpired we calculated the premium to the landlord to extend the lease to be between £15,200 and £17,600 not including costs.