Owning a apartment usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. your lease will normally be granted for a prescribed period of time , usually 99 or 125 years, although we have witnessed longer and shorter terms in Chorley. Inevitably, the period of lease left reduces as time goes by. This may slip by relatively unnoticed when the flat or house needs to be disposed of or re-mortgaged. The fewer the years remaining the lower the value of the property and the more it will cost to extend the lease. Eligible long lease owners in Chorley have the legal entitlement to extend the lease for an additional 90 years under statute. Please give due consideration before delaying your Chorley lease extension. Holding off the cost now only increases the price you will ultimately incur for a lease extension
It is generally considered that a property with more than 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional ninety years added to any lease with more than 45 years unexpired, the property will be equivalent in value to a freehold for many years ahead.
| 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. |
| Chelsea 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Using our service gives you enhanced control over the value of your Chorley leasehold, as your property will be more valuable and saleable in relation to the lease length should you want to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Two years ago Eliot, started to get near to the eighty-year mark with the lease on his one bedroom flat in Chorley. Having purchased his property 19 years previously, the lease term was of little interest. Fortunately, he recognised he needed to take steps soon on Extending the lease. Eliot arranged for a lease extension just ahead of time in June. Eliot and the freeholder via the management company eventually settled on sum of £6,000 . If he had missed the deadline, the figure would have gone up by at least £850.
Ms Chantelle Patel took over the lease of a one bedroom apartment in Chorley in July 2011. We are asked if we could estimate the premium would be for a 90 year extension to my lease. Comparative premises in Chorley with a long lease were valued about £166,800. The average amount of ground rent was £50 billed yearly. The lease expired on 18 November 2076. Given that there were 50 years remaining we estimated the premium to the landlord to extend the lease to be within £32,300 and £37,400 plus expenses.
Mrs Georgia King acquired a newly refurbished flat in Chorley in October 2002. We are asked if we could shed any light on how much (approximately) price would likely be for a 90 year extension to my lease. Comparable properties in Chorley with an extended lease were in the region of £280,000. The average amount of ground rent was £45 collected yearly. The lease elapsed in 2096. Having 70 years unexpired we approximated the compensation to the landlord for the lease extension to be within £12,400 and £14,200 plus expenses.