Unfortunately that a Cheetham Hill residential lease is a deteriorating asset. As the lease term reduces so does the value of the property. The extent of this is taken for granted in the first few years due to the depreciation being disguised by increases in the Cheetham Hill property prices.Once your lease nears 85ish years, you should start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease slips below eighty years - otherwise a higher premium will be payable. The majority of flat owners in Cheetham Hill will be able to extend under the legislation; however a lawyer should be able to clarify if you are eligibility. In some situations you may not qualify. There are also strict timeframes and procedures to follow once the process has commenced and you will need to be guided by your conveyancer for the duration of the process.
Leasehold residencies in Cheetham Hill with in excess of one hundred years unexpired on the lease are often 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 service 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. |
| Godiva Mortgages | 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. |
| 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. |
Lease extensions in Cheetham Hill can be a difficult process. We recommend you obtain professional help from a lawyer and valuer well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience dealing with Cheetham Hill lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
After protracted discussions with the freeholder of her basement flat in Cheetham Hill, Megan started the lease extension process just as the lease was coming close to the critical 80-year mark. The lease extension was concluded in September 2008. The landlord’s fees were kept to an absolute minimum.
Last January we were e-mailed by Mr L Jones , who bought a purpose-built flat in Cheetham Hill in November 2003. The question was if we could estimate the compensation to the landlord would be for a 90 year lease extension. Comparable properties in Cheetham Hill with a long lease were in the region of £173,800. The mid-range amount of ground rent was £60 invoiced yearly. The lease expired on 28 October 2081. Having 55 years as a residual term we approximated the compensation to the landlord to extend the lease to be between £31,400 and £36,200 exclusive of legals.
Mr I Cook completed a studio apartment in Cheetham Hill in September 2011. The question was if we could shed any light on how much (roughly) price would likely be to extend the lease by an additional years. Comparable premises in Cheetham Hill with a long lease were in the region of £235,200. The mid-range ground rent payable was £45 collected yearly. The lease end date was in 2092. Having 66 years as a residual term we calculated the premium to the landlord to extend the lease to be between £12,400 and £14,200 exclusive of fees.