The market value of a leasehold property in Chorley is impacted by how many years the lease has remaining. If it is near to or fewer than 80 years you should expect problems on re-sale, so it is advisable to arrange for the lease to be extended prior to buying. It is preferable to start the process of extending the lease is when a lease still has 82 years to run so that formalities can be concluded ahead of the 80 year threshold. Current legislation entitles Chorley qualifying lessees to acquire a new lease which will be for the balance of the existing lease plus a further term of ninety years. The intention of the valuation is to arrive at an opinion of the amount payable by the lessee to the freeholder for the acquisition of the lease extension.
Leasehold properties in Chorley with in excess of 100 years unexpired on the lease are sometimes 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 upside in buying the reversionary interest unless savings on ground rent and estate 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. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Chorley can be a difficult process. We recommend you secure professional help from a lawyer and surveyor 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 in-depth market knowledge 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 9 months of protracted negotiations with the landlord of her garden apartment in Chorley, Nicole initiated the lease extension process as the 80 year deadline was swiftly approaching. The legal work was finalised in March 2009. The freeholder’s costs were kept to an absolute minimum.
Last Spring we were called by Dr P Howard , who took over the lease of a studio apartment in Chorley in September 2005. The question was if we could shed any light on how much (roughly) compensation to the landlord could be to prolong the lease by an additional years. Comparative flats in Chorley with an extended lease were worth £174,200. The mid-range ground rent payable was £55 collected every twelve months. The lease expiry date was on 21 February 2077. Given that there were 51 years outstanding we calculated the compensation to the landlord to extend the lease to be within £31,400 and £36,200 not including professional charges.
Mr Alfie Watson owned a purpose-built apartment in Chorley in January 2009. The question was if we could approximate the price would likely be to extend the lease by ninety years. Comparable premises in Chorley with an extended lease were valued about £285,000. The average ground rent payable was £45 billed quarterly. The lease finished in 2097. Considering the 71 years outstanding we approximated the compensation to the landlord to extend the lease to be within £12,400 and £14,200 plus professional charges.