The rule of thumb is, all other things holding equal, the shorter the lease the more expensive the premium. Qualifying leaseholders in Cheetham Hill may extend the lease for an additional 90 years under Leasehold Reform legislation. Do give careful consideration before delaying your Cheetham Hill lease extension. Shelving that expense now simply increases the premium you will ultimately be required to pay to extend the lease.
It is conventional wisdom that a residential leasehold with over 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the property will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Engaging our service gives you enhanced control over the value of your Cheetham Hill 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 have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Rory owned a studio flat in Cheetham Hill on the market with a lease of just over 61 years outstanding. Rory informally approached his freeholder being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent initially set at £200 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Rory to invoke his statutory right. Rory procured expert legal guidance and secured an acceptable deal without resorting to tribunal and readily saleable.
Dr Jasper Wood completed a first floor flat in Cheetham Hill in November 1997. We are asked if we could shed any light on how much (roughly) compensation to the landlord would be for a ninety year lease extension. Similar flats in Cheetham Hill with 100 year plus lease were worth £275,000. The average amount of ground rent was £55 collected annually. The lease ran out on 3 November 2101. Considering the 76 years unexpired we calculated the premium to the landlord for the lease extension to be within £9,500 and £11,000 plus professional charges.
Last month we were called by Mr and Mrs. C Lambert , who took over the lease of a one bedroom flat in Cheetham Hill in June 2008. The dilemma was if we could estimate the premium would likely be for a 90 year extension to my lease. Identical flats in Cheetham Hill with an extended lease were valued about £176,200. The average amount of ground rent was £65 invoiced per annum. The lease expiry date was in 2081. Given that there were 56 years unexpired we estimated the compensation to the landlord to extend the lease to be within £29,500 and £34,000 exclusive of fees.