The market value of a leasehold property in Chorlton cum Hardy is impacted by how long the lease has remaining. If it is near to or less than 80 years you should envisage difficulties on re-sale, so it is recommended to arrange for the lease to be extended before purchasing. It is preferable to commence the process of extending the lease is when a lease still has 82 years to run so that a lease extension can be addressed ahead of the 80 year mark. Statute entitles Chorlton cum Hardy qualifying lessees to obtain a new lease which will be for the balance of the existing lease plus an additional term of ninety years. The reason of the valuation is to determine the sum payable by the lessee to the freeholder for the purchase of the lease extension.
It is conventional wisdom that a property with more than one hundred years remaining is worth approximately the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| 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. |
| Godiva Mortgages | 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The conveyancers that we work with procure Chorlton cum Hardy 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 conveyancing solicitor we work with provide it.
Trailing protracted negotiations with the landlord of her one bedroom flat in Chorlton cum Hardy, Tia commenced the lease extension process just as her lease was coming close to the all-important 80-year deadline. The lease extension completed in May 2011. The freeholder’s costs were restricted to less than 450 GBP.
In 2010 we were phoned by Mr and Mrs. L Reed who, having was assigned a lease of a first floor flat in Chorlton cum Hardy in February 2007. The question was if we could shed any light on how much (approximately) price would likely be to extend the lease by ninety years. Comparative properties in Chorlton cum Hardy with an extended lease were worth £240,600. The average amount of ground rent was £60 billed annually. The lease ended in 2087. Having 62 years as a residual term we estimated the compensation to the landlord to extend the lease to be between £21,900 and £25,200 not including costs.
Dr Caleb David moved into a purpose-built apartment in Chorlton cum Hardy in September 1996. The dilemma was if we could approximate the premium could be for a ninety year lease extension. Identical homes in Chorlton cum Hardy with 100 year plus lease were valued about £174,200. The mid-range amount of ground rent was £55 invoiced quarterly. The lease finished in 2076. Given that there were 51 years as a residual term we estimated the premium to the landlord for the lease extension to be between £31,400 and £36,200 not including costs.