There is no doubt about it a leasehold flat or house in Chorley is a wasting asset as a result of the shortening lease. Where the lease has, beyond 100 years remaining then this decrease may be fractional nevertheless there will become a stage when a lease has fewer than 80 years unexpired as part of the premium you will incur is what is termed as a marriage value. This could increase sharply the cost. It is the primary rational as to why you should extend the lease without delay. Most flat owners in Chorley will qualify for this right; that being said a conveyancing solicitor can advise if you are eligible to extend your lease. In certain situations you may not qualify, the most common reason being that you have owned the property for less than two years.
It is conventional wisdom that a property with more than 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years ahead.
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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. |
Engaging our service gives you better control over the value of your Chorley leasehold, as your property will be more valuable and saleable in terms of lease length should you decide to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Jasper was the the leasehold owner of a high value flat in Chorley on the market with a lease of just over fifty eight years left. Jasper informally approached his landlord a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord was keen to give an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £100 yearly. No ground rent would be payable on a lease extension were Jasper to invoke his statutory right. Jasper procured expert advice and was able to make a more informed judgement and handle with the matter and sell the flat.
Mr I Roberts completed a one bedroom flat in Chorley in November 2003. The dilemma was if we could approximate the premium would likely be to prolong the lease by ninety years. Similar premises in Chorley with a long lease were worth £210,000. The mid-range amount of ground rent was £50 collected annually. The lease concluded in 2106. Taking into account 80 years remaining we approximated the compensation to the freeholder to extend the lease to be between £8,600 and £9,800 exclusive of professional charges.
Ms R Jones moved into a garden apartment in Chorley in September 1996. We are asked if we could shed any light on how much (approximately) price would be for a ninety year lease extension. Identical homes in Chorley with a long lease were in the region of £275,000. The mid-range amount of ground rent was £45 invoiced per annum. The lease terminated in 2095. Taking into account 69 years remaining we approximated the premium to the freeholder for the lease extension to be between £12,400 and £14,200 exclusive of professional charges.