It’s an underpublicised certainty that a Cheadle Hulme residential lease is a deteriorating asset. As the lease term reduces so does the value of the property. The extent of this is not fully appreciated in the first few years due to the depreciation being disguised by increases in the Cheadle Hulme property market.Once your lease gets to 85ish years, you should start considering a lease extension. If the number of years remaining drops under eighty years, you will then be required to pay half of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. The marriage fee is the amount of additional value that a lease extension will add the property Most leasehold owners in Cheadle Hulme will be able to extend under the legislation; however a conveyancing solicitor should 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 lawyer throughout the process.
Leasehold premises in Cheadle Hulme with more than one hundred years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Barclays plc | |
| Barnsley Building Society | |
| Nationwide Building Society | |
| Skipton Building Society |
Irrespective of whether you are a tenant or a freeholder in Cheadle Hulme,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 in-depth market knowledge and the close ties they enjoy with Cheadle Hulme valuers.
Sebastian was the the leasehold proprietor of a high value apartment in Cheadle Hulme on the market with a lease of just over 72 years left. Sebastian informally spoke with his freeholder being a well known local-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years on the basis of a new rent at the outset set at £200 per annum and increase every 25 years thereafter. No ground rent would be payable on a lease extension were Sebastian to exercise his statutory right. Sebastian procured expert legal guidance and was able to make an informed decision and handle with the matter and ending up with a market value flat.
Last year we were approach by Mr Finley Wilson , who owned a newly refurbished apartment in Cheadle Hulme in September 2000. We are asked if we could shed any light on how much (approximately) premium would be to prolong the lease by ninety years. Comparable homes in Cheadle Hulme with an extended lease were in the region of £208,600. The mid-range ground rent payable was £60 invoiced monthly. The lease ended on 11 August 2083. Considering the 57 years as a residual term we calculated the premium to the freeholder for the lease extension to be between £30,400 and £35,200 plus costs.
In 2012 we were called by Dr N Wood who, having completed a ground floor flat in Cheadle Hulme in May 2008. We are asked if we could approximate the compensation to the landlord could be to extend the lease by an additional years. Comparable homes in Cheadle Hulme with a long lease were worth £200,000. The average ground rent payable was £50 collected yearly. The lease termination date was in 2103. Having 77 years unexpired we estimated the premium to the landlord for the lease extension to be within £8,600 and £9,800 plus legals.