When it comes to long leasehold premises in Chorley, you are in fact renting it for a certain period of time. 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 think about extending the lease sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease increases markedly particularly once there are less than eighty years left. Residents in Chorley with a lease nearing 81 years remaining should seriously consider extending it as soon as possible. When the lease term has less than eighty years left, under the current statute the landlord can calculate and charge a larger premium, based on a technical multiplication, known as “marriage value” which is due.
It is conventional wisdom that a residential leasehold with more than one hundred years unexpired lease term is worth roughly the same as a freehold. Where an additional 90 years added to any lease with more than 30 years left, the residence 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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. |
Using our service gives you better control over the value of your Chorley leasehold, as your property will be more valuable and saleable in respect of lease length should you want to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Off the back of protracted discussions with the freeholder of her studio apartment in Chorley, Lydia initiated the lease extension process just as her lease was approaching the crucial 80-year deadline. The legal work was finalised in June 2009. The freeholder’s fees were negotiated to a tad over 700 GBP.
Last Summer we were approach by Dr B Brooks , who completed a first floor apartment in Chorley in September 1995. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord could be to prolong the lease by a further 90 years. Identical flats in Chorley with a long lease were in the region of £184,000. The average ground rent payable was £55 billed quarterly. The lease terminated in 2079. Having 53 years remaining we estimated the premium to the freeholder for the lease extension to be between £28,500 and £33,000 plus costs.
Dr O Moreau acquired a first floor flat in Chorley in July 2001. We are asked if we could shed any light on how much (roughly) premium would be to extend the lease by ninety years. Similar residencies in Chorley with 100 year plus lease were valued about £290,000. The mid-range amount of ground rent was £45 invoiced every twelve months. The lease ran out on 15 November 2099. Taking into account 73 years outstanding we approximated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 plus expenses.