Owning a flat usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. your lease will ordinarily be granted for a fixed period of time , ordinarily 99 or 125 years, although we have witnessed longer and shorter terms in Chorley. Clearly, the length of lease remaining shortens over time. This is often ignored and only raises itself as an issue when the residence has to be sold or re-mortgaged. The shorter the lease the less it is worth and the more expensive it will be to obtain a lease extension. Eligible leaseholders in Chorley have the legal entitlement to extend the lease for a further 90 years in accordance with legislation. Do give careful consideration before delaying your Chorley lease extension. Putting off the cost now only increases the price you will ultimately have to pay to extend your lease
Leasehold premises in Chorley with in excess of one hundred years left 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 premises. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| Yorkshire 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. |
Lease extensions in Chorley can be a difficult process. We recommend you procure guidance from a conveyancer and surveyor with experience in this area.
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 a wealth of experience procuring Chorley lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
After unsuccessful discussions with the landlord of her ground floor flat in Chorley, Holly initiated the lease extension process just as her lease was approaching the critical 80-year threshold. The lease extension completed in June 2008. The freeholder’s fees were negotiated to less than 700 pounds.
Last Summer we were phoned by Ms A Anderson , who purchased a studio flat in Chorley in February 2004. The dilemma was if we could estimate the premium could be for a ninety year extension to my lease. Comparable flats in Chorley with 100 year plus lease were worth £270,000. The mid-range ground rent payable was £65 collected quarterly. The lease ended in 2093. Considering the 68 years remaining we approximated the premium to the landlord for the lease extension to be within £12,400 and £14,200 exclusive of fees.
Last Christmas we were e-mailed by Mr Matthew Evans , who was assigned a lease of a one bedroom flat in Chorley in August 1998. We are asked if we could shed any light on how much (approximately) premium would be for a ninety year lease extension. Identical residencies in Chorley with an extended lease were in the region of £208,600. The mid-range ground rent payable was £60 invoiced per annum. The lease expired in 2082. Given that there were 57 years left we estimated the premium to the freeholder for the lease extension to be within £30,400 and £35,200 exclusive of fees.