The market value of a leasehold property in Cheltenham is impacted by how many years the lease has left to run. If it is near to or less than eighty years you should expect problems on re-sale, so it is advisable to arrange for a lease extension prior to purchasing. It is ideal to start the process of extending the lease is when the lease still has 82 years unexpired so that formalities can be addressed in advance of the eighty year threshold. Current legislation entitles Cheltenham qualifying lessees to acquire a lease extension of ninety years in addition to the remaining lease term at a peppercorn rent (that is, rent free). The intention of the valuation is to determine the amount payable by the lessee to the freeholder for the acquisition of the lease extension.
It is conventional wisdom that a property with more than one hundred years remaining is worth roughly the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Godiva Mortgages | |
| National Westminster Bank | |
| Skipton Building Society | |
| Royal Bank of Scotland | |
| Yorkshire Building Society |
Lease extensions in Cheltenham can be a difficult process. We recommend you get guidance from a lawyer and valuer well versed in the legislation and lease extension process.
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 a wealth of experience procuring Cheltenham lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Off the back of lengthy discussions with the landlord of her studio apartment in Cheltenham, Kirsty commenced the lease extension process just as her lease was nearing the all-important 80-year threshold. The legal work was concluded in May 2007. The landlord’s costs were kept to an absolute minimum.
In 2011 we were e-mailed by Ms Kayleigh Carter who, having moved into a studio apartment in Cheltenham in February 2012. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord could be for a ninety year extension to my lease. Identical premises in Cheltenham with an extended lease were in the region of £250,000. The mid-range ground rent payable was £50 collected monthly. The lease finished in 2095. Given that there were 69 years remaining we calculated the premium to the landlord to extend the lease to be within £9,500 and £11,000 not including expenses.
Last Spring we were called by Mrs Katie Roux , who acquired a ground floor apartment in Cheltenham in August 2001. We are asked if we could estimate the premium would likely be to prolong the lease by an additional years. Comparative properties in Cheltenham with 100 year plus lease were in the region of £290,000. The mid-range ground rent payable was £60 billed quarterly. The lease terminated on 26 July 2106. Considering the 80 years left we calculated the compensation to the freeholder for the lease extension to be between £12,400 and £14,200 exclusive of fees.