With a residential leasehold property in Chorlton cum Hardy, you are actually purchasing a right to live in a property for a set period of time. In recent years flat leases typically tend to be for 99 years or 125. Even though this may appear like a long period of time, you should think about extending the lease sooner rather than later. The general rule is that the shorter the number of years is the cost of extending the lease gets disproportionately greater especially once there are fewer than 80 years left. Residents in Chorlton cum Hardy with a lease nearing 81 years remaining should seriously consider extending it without delay. When the lease term has below eighty years remaining, under the current legislation the landlord can calculate and levy a larger amount, based on a technical computation, strangely termed as “marriage value” which is due.
It is generally considered that a residential leasehold with more than one hundred years unexpired lease term is worth roughly the same as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Coventry Building Society | |
| Halifax | |
| Virgin | |
| Yorkshire Building Society |
Irrespective of whether you are a tenant or a freeholder in Chorlton cum Hardy,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Chorlton cum Hardy valuers.
Jasper owned a high value apartment in Chorlton cum Hardy on the market with a lease of a little over 59 years outstanding. Jasper informally approached his landlord a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord was keen to agree an extension on non-statutory terms taking the lease to 125 years subject to a new rent at the outset set at £150 per annum and increase every 25 years thereafter. No ground rent would be payable on a lease extension were Jasper to invoke his statutory right. Jasper procured expert advice and was able to make a more informed decision and handle with the matter and sell the flat.
Dr G Baker owned a studio apartment in Chorlton cum Hardy in April 1997. We are asked if we could shed any light on how much (roughly) premium would be to extend the lease by ninety years. Comparable premises in Chorlton cum Hardy with an extended lease were in the region of £285,000. The average amount of ground rent was £45 invoiced quarterly. The lease concluded on 24 February 2098. Considering the 72 years left we calculated the compensation to the freeholder for the lease extension to be between £12,400 and £14,200 plus legals.
Last Christmas we were approach by Dr T Lefèvre , who bought a ground floor flat in Chorlton cum Hardy in March 2001. We are asked if we could approximate the price would likely be for a ninety year lease extension. Similar properties in Chorlton cum Hardy with 100 year plus lease were valued about £233,200. The average amount of ground rent was £60 invoiced per annum. The lease terminated in 2087. Considering the 61 years outstanding we estimated the compensation to the freeholder for the lease extension to be within £22,800 and £26,400 not including professional charges.