Cheltenham leases on domestic properties are gradually losing value. if your lease has in the region of 90 years remaining, you should start thinking about a lease extension. If lease term falls under 80 years, you will then have to pay 50% of the property's 'marriage value' in addition to the standard cost of the lease extension to your landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Leasehold owners in Cheltenham will mostly qualify for a lease extension; however a solicitor should be able confirm if you qualify. In some situations you may not be entitled. There are also strict timetables and procedures to follow once the process is initiated so it’s best to be guided by a lawyer during the process.
It is generally accepted that a property with in excess of 100 years unexpired lease term is worth approximately the same as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | |
| Chelsea Building Society | |
| Halifax | |
| National Westminster Bank | |
| Skipton Building Society |
Lease extensions in Cheltenham can be a difficult process. We recommend you secure professional help from a conveyancing solicitor 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 in-depth market knowledge 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.
Jack owned a high value apartment in Cheltenham on the market with a lease of fraction over 72 years unexpired. Jack informally spoke with his freeholder being a well known London-based freehold company for a lease extension. The landlord was keen to give an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent initially set at £200 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Jack to invoke his statutory right. Jack obtained expert legal guidance and was able to make a more informed decision and deal with the matter and sell the flat.
In 2009 we were approached by Mr Kai Morgan who, having was assigned a lease of a studio apartment in Cheltenham in February 1997. We are asked if we could approximate the premium could be for a 90 year extension to my lease. Similar homes in Cheltenham with a long lease were worth £232,800. The average amount of ground rent was £45 invoiced per annum. The lease ended on 10 May 2091. Given that there were 65 years unexpired we calculated the premium to the freeholder for the lease extension to be between £13,300 and £15,400 not including costs.
Mr and Mrs. V Williams took over the lease of a ground floor apartment in Cheltenham in August 1996. The question was if we could approximate the compensation to the landlord would likely be for a ninety year lease extension. Comparative homes in Cheltenham with 100 year plus lease were valued about £275,000. The average amount of ground rent was £55 billed every twelve months. The lease ended on 8 October 2102. Taking into account 76 years left we approximated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 exclusive of professional charges.