Chorlton leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease gets more expensive. It is the case that most Chorlton tenants have the right to extend their lease by an additional ninety years by virtue of the 1993 Leasehold Reform Act. Where you are a leasehold owner in Chorlton you must check if your lease has between 70 and 90 years remaining. In particular once the remaining lease term slips under eighty years, the premium due on any lease extension increases dramatically as an element of the premium you will incur is what is known as a marriage value
It is conventional wisdom that a property with in excess of 100 years unexpired lease term is worth roughly the same as a freehold. Where an additional 90 years added to any lease with more than 45 years remaining, the residence will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| 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. |
Retaining our service will provide you increased control over the value of your Chorlton leasehold, as your property will be more valuable and marketable in respect of lease length should you decide to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Trailing lengthy correspondence with the freeholder of her garden apartment in Chorlton, Ellen initiated the lease extension process as the 80 year mark was swiftly nearing. The legal work was finalised in October 2014. The freeholder’s costs were kept to an absolute minimum.
Dr P Smith owned a purpose-built apartment in Chorlton in September 2001. We are asked if we could approximate the premium could be for a ninety year extension to my lease. Identical homes in Chorlton with a long lease were in the region of £285,000. The mid-range ground rent payable was £55 invoiced annually. The lease finished in 2104. Having 79 years remaining we calculated the compensation to the landlord to extend the lease to be between £13,300 and £15,400 not including costs.
Dr Zoe Wright purchased a basement flat in Chorlton in October 2004. The question was if we could approximate the compensation to the landlord could be to prolong the lease by ninety years. Comparative premises in Chorlton with a long lease were worth £193,400. The mid-range amount of ground rent was £65 collected per annum. The lease ran out on 2 September 2084. Considering the 59 years as a residual term we approximated the compensation to the freeholder for the lease extension to be between £21,900 and £25,200 plus professional charges.