Unfortunately that a Cheadle Hulme residential lease is a deteriorating asset. The lease value drops in proportion to its lease length. The extent of this is not fully appreciated in the first few years due to the reduction being disguised by increases in the Cheadle Hulme property prices.Once your lease gets to 85ish years, you should start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease falls under 80 years - otherwise a higher premium will be due. The majority of leasehold owners in Cheadle Hulme will be able to extend under the legislation; however a conveyancer will be able to confirm if you are eligibility. In some situations you may not qualify. There are also strict deadlines and procedures to be adhered to once the process has commenced and you will need to be guided by your lawyer from beginning to end of the formalities.
Leasehold residencies in Cheadle Hulme with more than 100 years unexpired 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 situations there is often little to be gained by purchasing the freehold unless savings on ground rent and estate charges warrant 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. |
| Bank of 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 |
| 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. |
Lease extensions in Cheadle Hulme can be a difficult process. We recommend you get professional help from a conveyancer and surveyor 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 Cheadle Hulme lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In the wake of 9 months of unsuccessful discussions with the freeholder of her first floor apartment in Cheadle Hulme, Catherine started the lease extension process just as the lease was nearing the critical eighty-year deadline. The legal work was concluded in September 2013. The landlord’s costs were kept to an absolute minimum.
Mr and Mrs. I Pérez moved into a one bedroom flat in Cheadle Hulme in June 2002. We are asked if we could shed any light on how much (roughly) premium would be for a ninety year extension to my lease. Comparative flats in Cheadle Hulme with a long lease were worth £235,600. The average ground rent payable was £60 invoiced quarterly. The lease elapsed on 22 May 2087. Considering the 62 years unexpired we approximated the premium to the freeholder for the lease extension to be between £21,900 and £25,200 not including expenses.
Last Autumn we were approach by Dr R Baker , who moved into a one bedroom apartment in Cheadle Hulme in June 1999. We are asked if we could estimate the premium would be for a ninety year lease extension. Comparable flats in Cheadle Hulme with 100 year plus lease were valued around £174,200. The mid-range ground rent payable was £55 collected monthly. The lease finished on 16 July 2076. Having 51 years unexpired we calculated the compensation to the freeholder for the lease extension to be between £31,400 and £36,200 plus costs.