Chorlton leases on domestic deteriorating in value. if your lease has about ninety years remaining, you should start thinking about a lease extension. An important point to note is that it is desirable for the lease extension to take place before the term of the existing lease drops under 80 years - otherwise a higher premium will be payable. Leasehold owners in Chorlton will usually qualify for a lease extension; however It would be wise to check with a lawyer to check your eligibility. In some circumstances you may not qualify. There are also strict deadlines and procedures to comply with once the process is initiated so it’s sensible to be guided by a lawyer during the process.
It is conventional wisdom that a property with in excess of one hundred years unexpired lease term is worth roughly the same as a freehold. Where an additional 90 years added to any lease with more than 30 years left, the residence will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Chelsea 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| 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 |
Irrespective of whether you are a tenant or a landlord in Chorlton,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Chorlton valuers.
In 2014 Henry, started to get near to the 80-year threshold with the lease on his basement flat in Chorlton. In buying his property two decades ago, the lease term was of minimal significance. Fortunately, he noticed he needed to take steps soon on Extending the lease. Henry was able to extend his lease at the eleventh hour in August. Henry and the freeholder via the management company in the end settled on the final figure of £5,000 . If he not met the deadline, the figure would have become more costly by at least £850.
In 2011 we were contacted by Ms Victoria Stewart who, having acquired a recently refurbished flat in Chorlton in September 2009. The dilemma was if we could shed any light on how much (approximately) price would likely be for a 90 year lease extension. Comparable properties in Chorlton with 100 year plus lease were valued about £265,000. The mid-range amount of ground rent was £50 invoiced every twelve months. The lease expiry date was on 16 March 2100. Considering the 74 years unexpired we approximated the premium to the landlord to extend the lease to be between £9,500 and £11,000 exclusive of professional charges.
Mr and Mrs. V Howard purchased a ground floor flat in Chorlton in April 2011. The question was if we could estimate the price could be to prolong the lease by a further 90 years. Identical premises in Chorlton with an extended lease were in the region of £166,400. The mid-range ground rent payable was £60 collected monthly. The lease elapsed in 2080. Having 54 years outstanding we approximated the premium to the landlord for the lease extension to be between £32,300 and £37,400 exclusive of costs.