As the the remaining lease term of a Chorley residential lease lessens so does its value and therefore the value of your property. If the lease has, in excess of 100 years remaining then this decrease may be of little impact however there will become a stage when a lease has fewer than 80 years remaining as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the main reason why you should extend the lease sooner as opposed to later. Most flat owners in Chorley will meet the qualifying criteria; nevertheless a conveyancing solicitor can confirm if you qualify for a lease extension. In limited situations you may not qualify, the most frequent reason being that you have owned the property for under two years.
Leasehold residencies in Chorley with more than 100 years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | |
| Halifax | |
| Nationwide Building Society | |
| Virgin | |
| Yorkshire Building Society |
Irrespective of whether you are a tenant or a freeholder in Chorley,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Chorley valuers.
Ryan owned a high value apartment in Chorley being marketed with a lease of just over 72 years unexpired. Ryan on an informal basis approached his landlord being a well known Manchester-based freehold company for a lease extension. The freeholder was keen to give an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £200 yearly. Ordinarily, ground rent would not be due on a lease extension were Ryan to invoke his statutory right. Ryan obtained expert advice and was able to make a more informed decision and deal with the matter and sell the property.
In 2010 we were phoned by Dr V Lambert who, having purchased a first floor apartment in Chorley in February 2001. The question was if we could shed any light on how much (roughly) compensation to the landlord could be for a ninety year extension to my lease. Identical residencies in Chorley with 100 year plus lease were in the region of £280,000. The average ground rent payable was £45 collected per annum. The lease finished on 11 July 2096. Having 70 years outstanding we approximated the compensation to the landlord to extend the lease to be between £12,400 and £14,200 plus professional charges.
Dr Max Wilson was assigned a lease of a garden apartment in Chorley in March 2011. The question was if we could approximate the compensation to the landlord would likely be to prolong the lease by 90 years. Comparable homes in Chorley with an extended lease were worth £218,400. The average ground rent payable was £60 billed quarterly. The lease concluded in 2085. Given that there were 59 years remaining we estimated the compensation to the freeholder to extend the lease to be within £27,600 and £31,800 exclusive of costs.