Chorlton leases on residential properties are gradually losing value. Where your lease has about ninety years left, you should start thinking about a lease extension. 80 years is a significant number: when the remaining term of a lease drops below this level then you begin paying an additional element called marriage value. Leasehold owners in Chorlton will mostly qualify for a lease extension; however a solicitor should be able confirm if you qualify. In certain cases you may not qualify. There are also strict deadlines and steps to comply with once the process is triggered so it’s best to be guided by a lawyer during the process.
Leasehold residencies in Chorlton with over 100 years unexpired 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 home. In such circumstances there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Halifax | |
| Nationwide Building Society | |
| The Mortgage Works | |
| Virgin |
The conveyancers that we work with undertake Chorlton 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 conveyancer we work with provide it.
Rory owned a high value apartment in Chorlton on the market with a lease of a few days over 72 years remaining. Rory on an informal basis contacted his landlord being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years subject to an increased rent to £50 per annum. Ordinarily, ground rent would not be payable on a lease extension were Rory to exercise his statutory right. Rory obtained expert legal guidance and secured an acceptable deal informally and readily saleable.
Last Spring we were contacted by Mr Owen Reed , who moved into a one bedroom apartment in Chorlton in April 2006. The dilemma was if we could estimate the premium could be to prolong the lease by a further 90 years. Comparable homes in Chorlton with an extended lease were valued about £166,400. The average amount of ground rent was £60 collected quarterly. The lease ran out in 2080. Taking into account 54 years outstanding we estimated the premium to the landlord to extend the lease to be between £32,300 and £37,400 not including legals.
In 2010 we were contacted by Mr and Mrs. B Sharif who, having took over the lease of a purpose-built apartment in Chorlton in April 2002. We are asked if we could approximate the compensation to the landlord would likely be for a ninety year lease extension. Identical properties in Chorlton with 100 year plus lease were valued around £227,800. The average ground rent payable was £45 collected quarterly. The lease came to a finish on 20 August 2091. Considering the 65 years remaining we calculated the compensation to the landlord to extend the lease to be within £13,300 and £15,400 exclusive of legals.