The rule of thumb is, all other things holding equal, the shorter the lease the more costly the premium. Qualifying leaseholders in Chorlton can extend the lease for a further ninety years under the 1993 Leasehold Reform Act. Do think carefully before delaying your Chorlton lease extension. Postponing the costs today simply escalates the amount you will ultimately have to pay to extend the lease.
Leasehold properties in Chorlton with in excess of one hundred years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value 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 |
|---|---|
| Chelsea Building Society | |
| Godiva Mortgages | |
| Halifax | |
| TSB | |
| The Mortgage Works |
Using our service gives you enhanced control over the value of your Chorlton leasehold, as your property will be more valuable and saleable in terms of lease length should you want to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Subsequent to lengthy negotiations with the landlord of her leasehold flat in Chorlton, Hollie initiated the lease extension process just as her lease was coming close to the all-important eighty-year threshold. The transaction completed in August 2010. The freeholder’s charges were negotiated to less than 600 pounds.
In 2010 we were called by Dr Alexander Lambert who, having acquired a studio flat in Chorlton in June 1997. The dilemma was if we could estimate the premium could be to extend the lease by a further 90 years. Similar properties in Chorlton with 100 year plus lease were worth £246,800. The average ground rent payable was £60 billed quarterly. The lease finished in 2076. Given that there were 50 years remaining we approximated the premium to the landlord for the lease extension to be between £44,700 and £51,600 plus legals.
Last Summer we were contacted by Mr and Mrs. O Bailey , who moved into a ground floor apartment in Chorlton in February 1997. The dilemma was if we could approximate the compensation to the landlord would likely be for a ninety year extension to my lease. Comparative residencies in Chorlton with an extended lease were valued about £203,200. The average amount of ground rent was £65 invoiced monthly. The lease elapsed in 2087. Taking into account 61 years unexpired we approximated the compensation to the freeholder to extend the lease to be within £20,000 and £23,000 exclusive of expenses.