As the the remaining lease term of a Chorley and Eccleston domestic lease decreases so does its value and therefore the value of your property. Where the lease has, in excess of 100 years to run then this decrease may be of little impact that being said there will become a stage when a lease has fewer than eighty years unexpired as part of the premium you will incur is what is known as a marriage value. This could increase sharply the cost. It is the primary logic behind why you should extend the lease sooner rather than later. Many flat owners in Chorley and Eccleston will qualify for this right; however a conveyancing solicitor can advise if 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.
It is conventional wisdom that a residential leasehold with more than 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Leeds Building Society | 85 years remaining from the start 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. |
| 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 |
The conveyancers that we work with undertake 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.
Logan was the the leasehold proprietor of a 2 bedroom flat in Chorley and Eccleston on the market with a lease of a few days over fifty eight years remaining. Logan informally spoke with his landlord a well known London-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years on the basis of a new rent to start with set at £150 per annum and increase every 25 years thereafter. No ground rent would be due on a lease extension were Logan to exercise his statutory right. Logan procured expert legal guidance and was able to make a more informed judgement and handle with the matter and readily saleable.
In 2014 we were called by Mr and Mrs. C Rodríguez who, having owned a one bedroom apartment in Chorley and Eccleston in July 2007. We are asked if we could approximate the premium would be to prolong the lease by a further 90 years. Comparative properties in Chorley and Eccleston with 100 year plus lease were valued around £174,200. The mid-range amount of ground rent was £55 collected quarterly. The lease lapsed in 2077. Given that there were 51 years as a residual term we calculated the compensation to the freeholder for the lease extension to be within £31,400 and £36,200 exclusive of costs.
In 2013 we were e-mailed by Mr V Gómez who, having bought a basement apartment in Chorley and Eccleston in March 1998. We are asked if we could approximate the price would likely be for a 90 year extension to my lease. Similar residencies in Chorley and Eccleston with an extended lease were in the region of £285,000. The mid-range ground rent payable was £45 invoiced per annum. The lease elapsed in 2097. Given that there were 71 years left we estimated the premium to the freeholder for the lease extension to be within £12,400 and £14,200 plus professional charges.