With a long leasehold premises in Chorlton, you effectively rent it for a certain period of time. In recent years flat leases typically tend to be for 99 years or 125. Many leasehold owners are unconcerned as this seems like a long period of time, you should consider extending the lease sooner as opposed to later. Accepted thinking is that the shorter the number of years is the cost of extending the lease gets disproportionately more expensive especially when there are less than eighty years remaining. Residents in Chorlton with a lease drawing near to 81 years remaining should seriously consider extending it sooner as opposed to later. When a lease has less than eighty years remaining, under the relevant Act the freeholder can calculate and charge a greater amount, assessed on a technical computation, known as “marriage value” which is due.
It is generally accepted that a residential leasehold with more than 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an further ninety years added to any lease with more than 45 years unexpired, the property will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Regardless of whether you are a tenant or a landlord in Chorlton,the lease extension solicitors 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.
Finn owned a high value apartment in Chorlton on the market with a lease of just over 72 years left. Finn informally approached his freeholder being a well known London-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years on the basis of an increased rent to £100 yearly. No ground rent would be payable on a lease extension were Finn to exercise his statutory right. Finn obtained expert legal guidance and was able to make an informed judgement and handle with the matter and sell the flat.
Ms F Baker took over the lease of a one bedroom flat in Chorlton in March 2008. We are asked if we could approximate the compensation to the landlord would likely be for a 90 year extension to my lease. Identical premises in Chorlton with a long lease were worth £270,000. The average ground rent payable was £55 collected per annum. The lease came to a finish on 1 June 2101. Taking into account 75 years outstanding we approximated the premium to the landlord to extend the lease to be between £9,500 and £11,000 plus professional charges.
Dr James Sánchez moved into a recently refurbished apartment in Chorlton in February 1999. We are asked if we could approximate the price would likely be to extend the lease by an additional years. Similar flats in Chorlton with an extended lease were valued about £168,800. The mid-range amount of ground rent was £60 collected yearly. The lease finished in 2081. Having 55 years as a residual term we calculated the compensation to the freeholder for the lease extension to be between £30,400 and £35,200 exclusive of professional charges.