When it comes to long leasehold premises in Cheetham Hill, you are actually buying an entitlement to live in a property for a prescribed time frame. Modern flat leases are usually granted for 99 years or 125. Many leasehold owners become complacent as this seems like a long period of time, you should consider a lease extension sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease becomes disproportionately more expensive particularly once there are less than eighty years remaining. Leasehold owners in Cheetham Hill with a lease drawing near to 81 years unexpired should seriously think of extending it without delay. When the lease term has below eighty years remaining, under the current statute the landlord is entitled to calculate and demand a larger amount, based on a technical calculation, strangely termed as “marriage value” which is due.
It is generally accepted that a residential leasehold with more than one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years in the future.
| 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. |
| 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. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| 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 procure professional help from a conveyancing solicitor and surveyor with experience in this area.
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 in-depth market knowledge procuring 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.
Noah was the the leasehold owner of a conversion flat in Cheetham Hill on the market with a lease of a little over fifty eight years remaining. Noah informally contacted his freeholder a well known Manchester-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years subject to a new rent initially set at £100 per annum and doubled every twenty five years thereafter. No ground rent would be payable on a lease extension were Noah to exercise his statutory right. Noah procured expert legal guidance and secured satisfactory deal without resorting to tribunal and ending up with a market value flat.
Last January we were contacted by Mr and Mrs. P Davis , who took over the lease of a ground floor flat in Cheetham Hill in November 2006. We are asked if we could approximate the price would be for a ninety year lease extension. Comparable flats in Cheetham Hill with a long lease were valued about £285,000. The mid-range ground rent payable was £55 collected per annum. The lease ended in 2105. Taking into account 80 years left we approximated the premium to the freeholder to extend the lease to be between £12,400 and £14,200 plus fees.
In 2011 we were phoned by Mr and Mrs. T Moreau who, having took over the lease of a ground floor apartment in Cheetham Hill in November 1995. We are asked if we could estimate the compensation to the landlord would likely be for a 90 year lease extension. Comparable premises in Cheetham Hill with a long lease were worth £200,800. The mid-range ground rent payable was £65 billed quarterly. The lease finished on 17 September 2085. Taking into account 60 years outstanding we approximated the compensation to the freeholder for the lease extension to be between £20,900 and £24,200 plus costs.