The basic rule is, all other things holding equal, the shorter the lease the more expensive the premium. Qualifying leaseholders in Cheetham Hill can extend the lease for an additional ninety years in accordance with Leasehold Reform legislation. Please think carefully before delaying your Cheetham Hill lease extension. Postponing the costs today simply increases the amount you will eventually be required to pay for a lease extension.
Leasehold premises in Cheetham Hill with over 100 years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
The lawyers that we work with handle Cheetham Hill 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.
Harry was the the leasehold proprietor of a studio flat in Cheetham Hill on the market with a lease of a little over fifty eight years unexpired. Harry on an informal basis approached his landlord being a well known London-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years on the basis of a new rent to start with set at £150 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Harry to invoke his statutory right. Harry obtained expert advice and was able to make a more informed decision and deal with the matter and sell the property.
Last Christmas we were called by Dr Ethan Khan , who purchased a ground floor apartment in Cheetham Hill in October 2009. We are asked if we could shed any light on how much (roughly) price would likely be to prolong the lease by ninety years. Comparative premises in Cheetham Hill with a long lease were in the region of £245,000. The average ground rent payable was £50 billed annually. The lease elapsed on 7 May 2093. Given that there were 68 years as a residual term we approximated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 plus fees.
In 2011 we were approached by Ms O Gómez who, having took over the lease of a one bedroom apartment in Cheetham Hill in January 1997. The question was if we could estimate the compensation to the landlord could be to prolong the lease by 90 years. Identical residencies in Cheetham Hill with a long lease were worth £285,000. The average amount of ground rent was £55 invoiced monthly. The lease terminated in 2104. Given that there were 79 years unexpired we approximated the compensation to the landlord to extend the lease to be between £13,300 and £15,400 not including expenses.