It’s a harsh truth that a Chadderton residential lease is a wasting asset. As the lease term diminishes so does the value of the property. The extent of this is taken for granted in the early years due to the reduction being disguised by increases in the Chadderton property prices.Once your lease gets to 85ish years, you should start thinking about a lease extension. If lease term dips below 80 years, you will end up paying half of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add the property Most flat owners in Chadderton will be able to extend under the legislation; however a conveyancer will be able to clarify if you qualify for an extension. In some situations you may not qualify. There are also strict timetables and procedures to follow once the process is instigated and you will need to be guided by your conveyancing solicitor throughout the formalities.
It is generally considered that a property with over one hundred years remaining is worth roughly the same as a freehold. Where an additional 90 years added to all but the shortest lease, the premises will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| 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. |
| Godiva Mortgages | 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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 Chadderton,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Chadderton valuers.
18 months ago Daniel, started to get near to the eighty-year mark with the lease on his two bedroom apartment in Chadderton. Having purchased his flat two decades ago, the lease term was of no significance. Luckily, he noticed he would imminently be paying an escalated premium for a lease extension. Daniel arranged for a lease extension just ahead of time in May. Daniel and the freeholder via the management company ultimately agreed on sum of £5,000 . If the lease had dropped to less than eighty years, the figure would have escalated by a minimum £1,075.
Dr P Rodríguez owned a basement flat in Chadderton in August 2009. We are asked if we could shed any light on how much (approximately) compensation to the landlord could be for a ninety year extension to my lease. Comparable flats in Chadderton with 100 year plus lease were worth £264,000. The average amount of ground rent was £60 billed quarterly. The lease end date was on 1 May 2078. Taking into account 53 years remaining we estimated the premium to the freeholder for the lease extension to be between £37,100 and £42,800 plus legals.
Last year we were called by Mrs T Cooper , who purchased a studio flat in Chadderton in February 2006. The question was if we could estimate the price would likely be to prolong the lease by 90 years. Comparative flats in Chadderton with a long lease were in the region of £225,400. The average amount of ground rent was £45 invoiced monthly. The lease ran out in 2089. Taking into account 64 years as a residual term we estimated the compensation to the landlord to extend the lease to be within £15,200 and £17,600 not including costs.