Cheltenham leases on domestic deteriorating in value. if your lease has in the region of ninety years unexpired, you should start considering the need for a lease extension. Eighty years is a significant number: when the remaining term of a lease dips below this level then you start paying an additional element called marriage value. Leasehold owners in Cheltenham will mostly be legally entitled to a lease extension; however it’s a good idea to check with a lawyer to check your eligibility. In some cases you may not qualify. There are also strict deadlines and formalities to comply with once the process is triggered so it’s sensible to be guided by a conveyancer during the process.
Leasehold premises in Cheltenham with over 100 years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges merit 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| 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. |
The conveyancers that we work with procure Cheltenham 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 conveyancer we work with provide it.
In the wake of 6 months of protracted discussions with the landlord of her garden apartment in Cheltenham, Jodie commenced the lease extension process as the eighty year deadline was quickly advancing. The lease extension was concluded in February 2007. The landlord’s fees were restricted to approximately 550 pounds.
In 2014 we were contacted by Mrs Maisie Vincent who, having acquired a garden apartment in Cheltenham in June 2010. We are asked if we could shed any light on how much (approximately) price could be to prolong the lease by ninety years. Comparable premises in Cheltenham with an extended lease were worth £254,200. The mid-range ground rent payable was £60 billed annually. The lease came to a finish in 2077. Considering the 51 years remaining we approximated the premium to the landlord to extend the lease to be within £43,700 and £50,600 plus costs.
Last Spring we were phoned by Mr and Mrs. E Harris , who moved into a one bedroom flat in Cheltenham in August 2005. We are asked if we could approximate the price would likely be for a 90 year extension to my lease. Identical properties in Cheltenham with a long lease were worth £215,600. The mid-range ground rent payable was £45 billed quarterly. The lease finished in 2088. Having 62 years as a residual term we approximated the premium to the freeholder to extend the lease to be between £18,100 and £20,800 plus legals.