With a long leasehold premises in Chorley, you are actually purchasing an entitlement to live in a property for a prescribed time frame. In recent years flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you may consider a lease extension sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease becomes disproportionately greater notably once there are fewer than 80 years remaining. Residents in Chorley with a lease drawing near to 81 years left should seriously think of extending it as soon as possible. Once the lease term has below 80 years outstanding, under the current statute the landlord can calculate and levy a greater premium, based on a technical computation, known as “marriage value” which is payable.
Leasehold premises in Chorley with in excess of one hundred years outstanding on the lease are sometimes 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 upside in buying the freehold unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Lloyds TSB Scotland | 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. |
| 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 |
Lease extensions in Chorley can be a difficult process. We recommend you get professional help from a lawyer 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 in-depth market knowledge procuring Chorley lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Half a year ago Toby, started to get near to the 80-year threshold with the lease on his two bedroom apartment in Chorley. Having bought his home two decades ago, the unexpired term was of little interest. by good luck, he realised he needed to take action soon on Extending the lease. Toby arranged for a lease extension at the eleventh hour in January. Toby and the landlord ultimately settled on the final figure of £5,500 . If the lease had descended to less than eighty years, the figure would have gone up by at least £900.
Last Winter we were phoned by Mr M Mitchell , who took over the lease of a recently refurbished flat in Chorley in January 2012. The dilemma was if we could approximate the compensation to the landlord would be for a ninety year lease extension. Comparable residencies in Chorley with a long lease were valued around £208,600. The mid-range ground rent payable was £60 collected annually. The lease expiry date was on 20 April 2083. Considering the 57 years unexpired we calculated the compensation to the freeholder for the lease extension to be between £30,400 and £35,200 exclusive of expenses.
Last year we were contacted by Mr and Mrs. A Patel , who owned a ground floor flat in Chorley in March 2006. We are asked if we could shed any light on how much (roughly) compensation to the landlord would be to extend the lease by ninety years. Identical properties in Chorley with 100 year plus lease were valued around £200,000. The mid-range amount of ground rent was £50 invoiced monthly. The lease concluded in 2103. Given that there were 77 years left we estimated the compensation to the freeholder for the lease extension to be between £8,600 and £9,800 not including expenses.