For anyone whose Chorlton home is held on a long lease, our message is clear – if you ignore the situation, your property will eventually revert to your landlord, leaving you empty-handed. The shorter the lease the less it is worth and the more expensive it will be to obtain a lease extension.
Leasehold residencies in Chorlton with over one hundred years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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. |
The conveyancers that we work with undertake Chorlton 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 lawyer we work with provide it.
In the wake of eight months of unsuccessful correspondence with the freeholder of her one bedroom apartment in Chorlton, Daisy initiated the lease extension process just as her lease was approaching the critical 80-year mark. The transaction completed in July 2010. The landlord’s charges were kept to an absolute minimum.
In 2012 we were contacted by Mr F García who, having acquired a one bedroom apartment in Chorlton in January 2012. We are asked if we could shed any light on how much (roughly) compensation to the landlord would be to extend the lease by ninety years. Identical homes in Chorlton with an extended lease were in the region of £265,000. The average amount of ground rent was £50 billed quarterly. The lease concluded on 28 July 2099. Having 74 years left we estimated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 plus professional charges.
Last Christmas we were approach by Mr V Campbell , who completed a garden flat in Chorlton in September 1995. We are asked if we could estimate the price would be for a 90 year extension to my lease. Identical properties in Chorlton with an extended lease were in the region of £166,400. The average ground rent payable was £60 billed every twelve months. The lease ran out in 2079. Given that there were 54 years outstanding we calculated the compensation to the freeholder for the lease extension to be between £32,300 and £37,400 plus costs.