Chorley leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease becomes more expensive. Legislation has been in place for sometime now allowing qualifying Chorley residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Chorley you would be well advised to check if your lease has between 70 and ninety years left. There are compelling reasons why a Chorley leaseholder with a lease having around 80 years remaining should take steps to ensure that a lease extension is put in place without delay
It is conventional wisdom that a residential leasehold with more than one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional ninety years added to any lease with more than 35 years remaining, the property will be equivalent in value to a freehold for many years in the future.
|Bank of Scotland||Minimum 70 years from the date of the mortgage.|
|Barclays plc||Mortgage term plus 25 years provided that leases of less than 85 years are be referred to us for approval.|
|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.|
|Halifax||Minimum 70 years from the date of the mortgage.|
|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
The lawyers that we work with undertake 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 lawyer we work with provide it.
In 2014 Matthew, came seriously near to the eighty-year mark with the lease on his two bedroom flat in Chorley. Having purchased his home 18 years previously, the unexpired term was of little importance. by good luck, he became aware that he needed to take steps soon on Extending the lease. Matthew was able to extend his lease just under the wire in January. Matthew and the freeholder via the managing agents in the end settled on sum of £5,500 . If he not met the deadline, the premium would have increased by a minimum £1,050.
Mrs Y Adams took over the lease of a one bedroom flat in Chorley in January 2006. We are asked if we could approximate the compensation to the landlord would likely be to extend the lease by a further 90 years. Comparable homes in Chorley with a long lease were in the region of £198,800. The mid-range ground rent payable was £55 invoiced yearly. The lease expired in 2077. Given that there were 55 years unexpired we calculated the premium to the landlord for the lease extension to be between £33,300 and £38,400 plus costs.
Dr B Bertrand owned a garden apartment in Chorley in January 2009. We are asked if we could approximate the price would likely be for a ninety year lease extension. Similar residencies in Chorley with 100 year plus lease were valued around £300,000. The average ground rent payable was £50 billed quarterly. The lease elapsed on 3 April 2097. Considering the 75 years remaining we estimated the premium to the freeholder for the lease extension to be between £8,600 and £9,800 plus costs.