Chorley leases on residential deteriorating in value. Where your lease has approximately ninety years unexpired, you should start thinking about a lease extension. If lease term is under 80 years, you will then have to pay 50% of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Flat owners in Chorley will usually be legally entitled to a lease extension; however It would be wise to check with a conveyancing solicitor to confirm your eligibility. In some cases you may not be entitled. There are also strict timetables and formalities to follow once the process has started so it’s best to be guided by a lawyer during the process.
It is conventional wisdom that a residential leasehold with more than one hundred years remaining is worth roughly the same as a freehold. Where an further ninety years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The lawyers that we work with procure Chorley 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 conveyancing solicitor we work with provide it.
Last October Jonathan, came seriously close to the eighty-year mark with the lease on his purpose- built flat in Chorley. Having bought his flat two decades ago, the unexpired term was of little relevance. Thankfully, he recognised he needed to take action soon on Extending the lease. Jonathan extended the lease at the eleventh hour in June. Jonathan and the landlord ultimately settled on an amount of £5,500 . If he not met the deadline, the figure would have become more costly by at least £1,100.
Mr and Mrs. V Edwards completed a studio apartment in Chorley in August 1998. We are asked if we could approximate the price could be to extend the lease by a further 90 years. Comparative residencies in Chorley with a long lease were in the region of £280,000. The mid-range ground rent payable was £45 billed yearly. The lease expired on 3 February 2096. Considering the 71 years outstanding we calculated the compensation to the freeholder for the lease extension to be within £12,400 and £14,200 exclusive of expenses.
In 2011 we were contacted by Mr and Mrs. L Clark who, having bought a basement apartment in Chorley in July 1996. The dilemma was if we could estimate the premium would likely be for a ninety year lease extension. Comparative flats in Chorley with an extended lease were worth £225,800. The average amount of ground rent was £60 collected per annum. The lease ran out on 11 August 2085. Having 60 years remaining we estimated the compensation to the landlord to extend the lease to be within £25,700 and £29,600 plus fees.