Owning a apartment usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. This lease will normally be granted for a fixed period of time , ordinarily 99 or 125 years, although we have seen longer and shorter terms in Chorley. Inevitably, the length of lease left shortens over time. This is often ignored and only raises itself as an issue when the flat or house needs to be disposed of or re-mortgaged. The fewer the years remaining the lower the value of the property and the more it will cost to obtain a lease extension. Qualifying long lease owners in Chorley have the right to extend the lease for a further ninety years under legislation. You should give due deliberation before delaying your Chorley lease extension. Holding off that expense now simply increases the price you will eventually incur for a lease extension
Leasehold premises in Chorley with over 100 years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Halifax | Minimum 70 years from the date 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. |
The conveyancing solicitors that we work with procure Chorley lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
Off the back of unsuccessful negotiations with the landlord of her one bedroom flat in Chorley, Katherine commenced the lease extension process as the 80 year deadline was fast nearing. The transaction was finalised in October 2009. The freeholder’s charges were negotiated to a tad over 700 pounds.
Mr Logan Bell bought a purpose-built flat in Chorley in July 2005. The question was if we could estimate the compensation to the landlord would be for a 90 year lease extension. Similar flats in Chorley with an extended lease were worth £233,200. The mid-range amount of ground rent was £60 billed per annum. The lease ended on 2 July 2087. Considering the 61 years as a residual term we calculated the compensation to the landlord for the lease extension to be between £22,800 and £26,400 exclusive of legals.
In 2013 we were e-mailed by Mr and Mrs. R Moore who, having moved into a ground floor apartment in Chorley in August 2012. The question was if we could estimate the compensation to the landlord would be to extend the lease by a further 90 years. Comparable flats in Chorley with an extended lease were valued about £166,800. The mid-range ground rent payable was £50 billed per annum. The lease concluded on 24 October 2076. Considering the 50 years unexpired we estimated the compensation to the freeholder to extend the lease to be within £32,300 and £37,400 exclusive of legals.