Chorlton cum Hardy leases on residential deteriorating in value. if your lease has in the region of 90 years unexpired, you should start thinking about a lease extension. An important point to note is that it is desirable for a lease extension to take place before the term of the current lease drops under 80 years - otherwise a higher amount will be due. Flat owners in Chorlton cum Hardy will usually be legally entitled to a lease extension; however a solicitor will confirm if you qualify. In certain cases you may not be entitled. There are also strict deadlines and procedures to follow once the process has started so it’s sensible to be guided by a conveyancing solicitor during the process.
Leasehold premises in Chorlton cum Hardy with in excess of 100 years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Leeds Building Society | 85 years remaining from the start 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. |
| Yorkshire 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. |
The conveyancing solicitors 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.
Half a year ago Jonathan, started to get close to the 80-year mark with the lease on his first floor apartment in Chorlton cum Hardy. Having purchased his property twenty years ago, the length of the lease was of little relevance. Fortunately, he noticed he would soon be paying an inflated amount for Extending the lease. Jonathan was able to extend his lease just ahead of time last September. Jonathan and the landlord who owned the flat above ultimately agreed on a premium of £5,000 . If the lease had descended lower than eighty years, the sum would have become more exhorbitant by at least £1,000.
In 2011 we were contacted by Mr and Mrs. L Collins who, having bought a purpose-built flat in Chorlton cum Hardy in February 2008. The question was if we could estimate the premium would be for a 90 year lease extension. Similar premises in Chorlton cum Hardy with a long lease were valued about £257,800. The mid-range ground rent payable was £65 billed every twelve months. The lease expired on 26 January 2091. Taking into account 65 years remaining we estimated the compensation to the freeholder for the lease extension to be between £18,100 and £20,800 plus expenses.
Last Christmas we were approach by Mr and Mrs. B Williams , who was assigned a lease of a studio apartment in Chorlton cum Hardy in October 1997. We are asked if we could approximate the price would be to prolong the lease by a further 90 years. Comparable residencies in Chorlton cum Hardy with a long lease were valued about £191,400. The average ground rent payable was £55 collected every twelve months. The lease elapsed on 6 January 2080. Considering the 54 years left we estimated the premium to the landlord to extend the lease to be between £34,200 and £39,600 exclusive of fees.