When it comes to long leasehold property in Cheadle, you are actually purchasing a right to reside in a property for a prescribed time frame. In recent years flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you should think about a lease extension sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease becomes disproportionately greater notably once there are fewer than 80 years left. Leasehold owners in Cheadle with a lease drawing near to 81 years remaining should seriously consider extending it sooner as opposed to later. Once a lease has fewer than 80 years remaining, under the current legislation the landlord is entitled to calculate and charge a larger premium, based on a technical calculation, strangely termed as “marriage value” which is due.
Leasehold residencies in Cheadle with more than one hundred years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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 lawyers that we work with handle Cheadle 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.
Elijah owned a conversion apartment in Cheadle being sold with a lease of fraction over 59 years outstanding. Elijah informally spoke with his freeholder a well known local-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £100 annually. Ordinarily, ground rent would not be due on a lease extension were Elijah to exercise his statutory right. Elijah procured expert advice and was able to make an informed decision and deal with the matter and ending up with a market value flat.
In 2010 we were e-mailed by Dr V André who, having acquired a basement apartment in Cheadle in March 2010. We are asked if we could estimate the premium would be to prolong the lease by an additional years. Identical properties in Cheadle with an extended lease were worth £265,000. The average ground rent payable was £50 collected per annum. The lease terminated in 2099. Considering the 74 years left we calculated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 not including fees.
Last Winter we were phoned by Ms Lydia Allen , who took over the lease of a basement flat in Cheadle in July 2002. We are asked if we could approximate the compensation to the landlord would be to extend the lease by ninety years. Similar homes in Cheadle with a long lease were valued about £166,400. The mid-range ground rent payable was £60 collected monthly. The lease expiry date was in 2079. Considering the 54 years unexpired we calculated the premium to the landlord for the lease extension to be between £32,300 and £37,400 plus legals.