Chorley leases on domestic deteriorating in value. if your lease has approximately ninety years unexpired, you should start thinking about a lease extension. If lease term dips under eighty years, you will then be required to pay half of the property's 'marriage value' on top of the standard cost of the lease extension to your landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Flat owners in Chorley will mostly qualify for a lease extension; however a solicitor will check if you qualify. In certain cases you may not be entitled. There are also strict timetables and steps to comply with once the process is initiated so it’s prudent to be guided by a conveyancing solicitor during the process.
Leasehold premises in Chorley with more than one hundred years left 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 to be gained by buying the reversionary interest unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Coventry Building Society | 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. |
| 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. |
Engaging our service gives you increased control over the value of your Chorley leasehold, as your property will be more valuable and saleable in terms of lease length should you want to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
16 months ago Jacob, started to get near to the 80-year threshold with the lease on his purpose- built flat in Chorley. In buying his home 18 years ago, the length of the lease was of no concern. As luck would have it, it dawned on him that he needed to take steps soon on a lease extension. Jacob extended the lease just under the wire last May. Jacob and the landlord who owned the flat above eventually agreed on the final figure of £5,000 . If he not met the deadline, the sum would have escalated by at least £925.
In 2014 we were called by Ms J Lambert who, having moved into a basement flat in Chorley in October 1997. The dilemma was if we could shed any light on how much (approximately) premium could be for a 90 year extension to my lease. Identical premises in Chorley with 100 year plus lease were in the region of £198,800. The average ground rent payable was £55 collected yearly. The lease ended on 5 January 2081. Having 55 years outstanding we estimated the premium to the landlord to extend the lease to be between £33,300 and £38,400 not including expenses.
Dr Adam Campbell moved into a one bedroom apartment in Chorley in October 1996. We are asked if we could estimate the compensation to the landlord could be to extend the lease by ninety years. Comparative premises in Chorley with 100 year plus lease were worth £295,000. The average ground rent payable was £45 collected per annum. The lease finished on 23 October 2101. Given that there were 75 years remaining we calculated the premium to the freeholder for the lease extension to be between £8,600 and £9,800 not including fees.