Top reasons for Cheetham Hill lease extension

Top reasons for lease extension now:

A Cheetham Hill lease depreciates with the years remaining on the lease.

Unfortunately that a Cheetham Hill residential lease is a deteriorating asset. The lease value drops in proportion to its lease length. The extent of this is not fully appreciated in the early years due to the deflation being disguised by increases in the Cheetham Hill property market.Once your lease nears 85ish years, you should start thinking about a lease extension. If lease term drops under eighty years, you will end up paying half of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add the property The majority of leasehold owners in Cheetham Hill will be able to extend under the legislation; however a conveyancer will be able to clarify if you qualify for an extension. In some situations you may not be entitled. There are also strict timetables and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancing solicitor for the duration of the process.

An extended lease has roughly the same value as a freehold

It is generally accepted that a property with more than 100 years remaining is worth roughly the same as a freehold. Where an further 90 years added to any lease with more than 45 years remaining, the property will be worth the same as a freehold for decades to come.

Lending institutions will not grant a mortgage on a short lease

Banks and Building Societies have set criteria when loaning monies charged on leasehold homes. Many will simply not lend at all once the residual lease term falls under a specified unexpired lease term. Many Banks and Building Societies will not regard property with a remaining term of less than 75 years as adequate security. As well as impacting your ability to sell, it is also relevant if you are seeking to remortgage your Cheetham Hill property.

Get in touch with one of our Cheetham Hill lease extension solicitors or enfranchisement solicitors

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.

Cheetham Hill Lease Extension Example Cases:

Teddy, Cheetham Hill, Greater Manchester,

Teddy was the the leasehold owner of a conversion apartment in Cheetham Hill on the market with a lease of fraction over fifty eight years outstanding. Teddy informally contacted his freeholder a well known Bristol-based freehold company for a lease extension. The landlord was prepared to give an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent to start with set at £150 per annum and doubled every 25 years thereafter. No ground rent would be due on a lease extension were Teddy to exercise his statutory right. Teddy procured expert legal guidance and was able to make a more informed judgement and deal with the matter and ending up with a market value flat.

Cheetham Hill case:

Dr M Ramírez purchased a one bedroom flat in Cheetham Hill in September 2000. The dilemma was if we could approximate the compensation to the landlord could be to extend the lease by a further 90 years. Identical premises in Cheetham Hill with a long lease were valued about £265,000. The average ground rent payable was £55 collected monthly. The lease concluded on 6 May 2100. Considering the 74 years as a residual term we estimated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 plus fees.

Cheetham Hill case:

Last month we were approach by Dr S Reed , who acquired a ground floor flat in Cheetham Hill in June 1995. We are asked if we could shed any light on how much (roughly) premium could be for a 90 year extension to my lease. Comparable premises in Cheetham Hill with a long lease were worth £166,400. The average amount of ground rent was £60 collected per annum. The lease terminated on 3 April 2080. Given that there were 54 years unexpired we estimated the premium to the freeholder to extend the lease to be between £32,300 and £37,400 not including costs.