As the the remaining lease term of a Chorlton domestic lease decreases so does its value and therefore the value of your property. Where the lease has, beyond 99 years to run then this decrease may be of little impact nevertheless there will become a point in time when a lease has less than eighty years remaining as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the main reason why you should extend the lease without delay. Many flat owners in Chorlton will qualify for this right; however a conveyancer should be able to advise if you are eligible to extend your lease. In limited situations you may not qualify, the most common reason being that you have owned the property for under two years.
Leasehold premises in Chorlton with more than one hundred years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | 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. |
| Coventry Building Society | 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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 |
Lease extensions in Chorlton can be a difficult process. We recommend you secure professional help from a conveyancer and valuer well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge procuring Chorlton lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Following unsuccessful discussions with the freeholder of her studio flat in Chorlton, Stephanie started the lease extension process just as the lease was coming close to the crucial 80-year mark. The lease extension completed in January 2008. The freeholder’s costs were restricted to approximately 600 pounds.
Dr S King owned a ground floor flat in Chorlton in May 1998. We are asked if we could estimate the compensation to the landlord would likely be to prolong the lease by a further 90 years. Identical properties in Chorlton with a long lease were worth £220,400. The mid-range ground rent payable was £45 billed monthly. The lease concluded on 19 October 2089. Taking into account 64 years outstanding we estimated the compensation to the landlord to extend the lease to be within £15,200 and £17,600 plus fees.
In 2014 we were contacted by Dr P Young who, having acquired a newly refurbished apartment in Chorlton in June 2008. We are asked if we could approximate the price would be to prolong the lease by 90 years. Comparable residencies in Chorlton with a long lease were worth £270,000. The mid-range ground rent payable was £55 billed monthly. The lease lapsed on 17 April 2100. Having 75 years remaining we estimated the compensation to the landlord for the lease extension to be within £9,500 and £11,000 plus costs.