As the the remaining lease term of a Cheetham Hill residential lease lessens so does its value and therefore the value of your property. Where the lease has, more than one hundred years to run then this decrease may be of little impact nevertheless there will become a point in time when a lease has under than 80 years left as part of the premium you will incur is what is known as a marriage value. This could increase sharply the cost. It is the main reason why you should extend the lease without delay. Most flat owners in Cheetham Hill will meet the qualifying criteria; however a conveyancer should be able to advise whether you are eligible for a lease extension. In certain situations you may not qualify, the most common reason being that you have owned the property for under two years.
Leasehold premises in Cheetham Hill with more than 100 years outstanding on the lease are sometimes 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 upside in buying the reversionary interest unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
Regardless of whether you are a tenant or a landlord in Cheetham Hill,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Cheetham Hill valuers.
Subsequent to protracted discussions with the freeholder of her ground floor apartment in Cheetham Hill, Aimee initiated the lease extension process just as the lease was nearing the crucial eighty-year mark. The legal work completed in July 2005. The freeholder’s fees were kept to an absolute minimum.
In 2012 we were approached by Ms U James who, having was assigned a lease of a one bedroom flat in Cheetham Hill in March 2010. We are asked if we could estimate the premium could be for a 90 year extension to my lease. Comparable flats in Cheetham Hill with 100 year plus lease were worth £176,200. The average ground rent payable was £65 collected monthly. The lease finished on 3 October 2082. Considering the 56 years left we estimated the premium to the landlord to extend the lease to be within £29,500 and £34,000 not including costs.
In 2012 we were approached by Mrs Zoe Mitchell who, having bought a newly refurbished apartment in Cheetham Hill in July 2000. The dilemma was if we could estimate the compensation to the landlord would likely be for a 90 year lease extension. Comparable residencies in Cheetham Hill with an extended lease were in the region of £242,600. The average amount of ground rent was £45 collected per annum. The lease ran out on 10 October 2093. Given that there were 67 years left we estimated the compensation to the landlord for the lease extension to be between £11,400 and £13,200 plus expenses.