On the balance of probabilities if you own a flat in Chorley you actually own a long leasehold interest over your property
Leasehold premises in Chorley with in excess of 100 years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and maintenance charges merit 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Regardless of whether you are a tenant or a landlord in Chorley,the lease extension experts that we work with will always be happy 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.
Muhammad was the the leasehold owner of a high value apartment in Chorley on the market with a lease of a few days over 72 years remaining. Muhammad informally contacted his landlord being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent to start with set at £150 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Muhammad to invoke his statutory right. Muhammad procured expert legal guidance and secured an acceptable resolution without going to tribunal and sell the property.
Mrs V Brown acquired a one bedroom apartment in Chorley in April 1996. The question was if we could approximate the compensation to the landlord could be to extend the lease by ninety years. Similar homes in Chorley with an extended lease were worth £201,200. The mid-range amount of ground rent was £55 invoiced every twelve months. The lease expired in 2081. Having 56 years left we calculated the premium to the freeholder for the lease extension to be between £31,400 and £36,200 exclusive of costs.
Mr and Mrs. P Martin completed a garden apartment in Chorley in October 2000. We are asked if we could estimate the compensation to the landlord would be to extend the lease by ninety years. Identical premises in Chorley with 100 year plus lease were in the region of £300,000. The mid-range ground rent payable was £50 collected quarterly. The lease came to a finish on 4 January 2101. Taking into account 76 years left we calculated the premium to the landlord for the lease extension to be between £8,600 and £9,800 not including costs.