The market value of Chorley leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of a lease extension can escalate significantly once the unexpired lease term is less than eighty years
Leasehold premises in Chorley with in excess of 100 years unexpired on the lease are often regarded as a ‘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 purchasing the reversionary interest unless savings on ground rent and estate charges justify 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; |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| 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 |
Irrespective of whether you are a tenant or a landlord in Chorley,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Chorley valuers.
Off the back of lengthy correspondence with the landlord of her one bedroom flat in Chorley, Charlotte initiated the lease extension process as the 80 year deadline was fast nearing. The lease extension was concluded in August 2006. The freeholder’s charges were restricted to below 700 pounds.
Mr and Mrs. A Cook completed a basement apartment in Chorley in September 2010. We are asked if we could shed any light on how much (approximately) price could be to prolong the lease by a further 90 years. Comparative homes in Chorley with an extended lease were in the region of £295,000. The mid-range amount of ground rent was £45 invoiced quarterly. The lease elapsed in 2100. Given that there were 74 years unexpired we calculated the compensation to the freeholder to extend the lease to be between £9,500 and £11,000 not including costs.
Mr and Mrs. S Fournier purchased a one bedroom flat in Chorley in March 1998. We are asked if we could approximate the compensation to the landlord would be to prolong the lease by 90 years. Comparable homes in Chorley with an extended lease were worth £243,000. The mid-range amount of ground rent was £65 collected yearly. The lease terminated in 2089. Taking into account 63 years left we estimated the premium to the freeholder for the lease extension to be between £20,000 and £23,000 not including professional charges.