The rule of thumb is, all other things holding equal, the shorter the lease the more expensive the premium. Qualifying leaseholders in Cheetham have the right to extend the lease for a further 90 years under statute. Do think carefully before delaying your Cheetham lease extension. Postponing the costs today simply escalates the price you will eventually have to pay to extend the lease.
It is generally considered that a property with over 100 years remaining is worth approximately the same as a freehold. Where an additional 90 years added to any lease with more than 45 years unexpired, the property will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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. |
Irrespective of whether you are a tenant or a landlord in Cheetham,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Cheetham valuers.
Elijah was the the leasehold owner of a conversion flat in Cheetham on the market with a lease of just over sixty years left. Elijah on an informal basis contacted his freeholder being a well known London-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. Ordinarily, ground rent would not be payable on a lease extension were Elijah to exercise his statutory right. Elijah obtained expert legal guidance and was able to make an informed decision and handle with the matter and sell the property.
Last January we were phoned by Ms S Moore , who moved into a garden flat in Cheetham in July 2005. We are asked if we could approximate the price would be for a ninety year lease extension. Comparative flats in Cheetham with an extended lease were in the region of £174,200. The mid-range amount of ground rent was £55 billed per annum. The lease ended in 2075. Considering the 51 years unexpired we estimated the premium to the freeholder to extend the lease to be between £31,400 and £36,200 not including legals.
Last June we were e-mailed by Dr T Roberts , who bought a first floor flat in Cheetham in January 2010. The question was if we could approximate the compensation to the landlord could be to prolong the lease by a further 90 years. Comparative residencies in Cheetham with 100 year plus lease were valued about £285,000. The average ground rent payable was £45 invoiced monthly. The lease elapsed in 2095. Given that there were 71 years unexpired we calculated the compensation to the landlord to extend the lease to be within £12,400 and £14,200 not including professional charges.