With a long leasehold premises in Chorley, you are actually buying a right to live in a property for a set period of time. In recent years flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned as this seems like a lengthy period of time, you may think about extending the lease sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease gets disproportionately greater notably once there are fewer than eighty years remaining. Residents in Chorley with a lease nearing 81 years unexpired should seriously think of extending it without delay. Once the lease term has fewer than 80 years remaining, under the current legislation the freeholder is entitled to calculate and levy a larger premium, assessed on a technical calculation, strangely termed as “marriage value” which is payable.
Leasehold properties in Chorley with over 100 years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| Yorkshire Building Society | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
Lease extensions in Chorley can be a difficult process. We recommend you get professional help from a conveyancing solicitor and surveyor well versed in the legislation and lease extension process.
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 dealing with Chorley lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In the wake of eight months of lengthy discussions with the freeholder of her garden flat in Chorley, Charlotte commenced the lease extension process as the eighty year threshold was quickly approaching. The lease extension was finalised in July 2012. The landlord’s fees were kept to an absolute minimum.
In 2011 we were contacted by Mr and Mrs. P Taylor who, having acquired a studio flat in Chorley in March 2003. We are asked if we could shed any light on how much (approximately) compensation to the landlord would likely be to extend the lease by ninety years. Identical residencies in Chorley with an extended lease were worth £267,600. The mid-range ground rent payable was £65 invoiced annually. The lease end date was on 4 October 2092. Given that there were 67 years as a residual term we calculated the premium to the landlord to extend the lease to be between £14,300 and £16,400 exclusive of expenses.
In 2014 we were contacted by Dr Jackson Martin who, having acquired a garden flat in Chorley in October 2009. The question was if we could approximate the price could be for a ninety year extension to my lease. Identical residencies in Chorley with 100 year plus lease were worth £201,200. The mid-range amount of ground rent was £55 billed every twelve months. The lease expired in 2081. Considering the 56 years as a residual term we calculated the premium to the freeholder to extend the lease to be within £31,400 and £36,200 plus expenses.