As the length of the unexpired term of a Cheadle Hulme domestic lease lessens so does its value and therefore the value of your property. If the lease has, more than 99 years remaining then this decrease may be of little impact that being said there will become a point in time when a lease has less than 80 years unexpired as part of the premium you will incur is what is known as a marriage value. This could increase markedly the cost. It is the main rational as to why you should extend the lease without delay. Most flat owners in Cheadle Hulme will meet the qualifying criteria; that being said a conveyancing solicitor should be able to advise whether you qualify for a lease extension. In certain situations you may not qualify, the most common reason being that you have owned the property for less than two years.
Leasehold properties in Cheadle Hulme with in excess of one hundred years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Chelsea 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. |
| Godiva Mortgages | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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 handle Cheadle Hulme 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 conveyancing solicitor we work with provide it.
Last Spring Harrison, started to get close to the eighty-year threshold with the lease on his studio apartment in Cheadle Hulme. In buying his flat twenty years previously, the length of the lease was of no relevance. Fortunately, he noticed he would soon be paying an inflated amount for a lease extension. Harrison arranged for a lease extension just ahead of time in April. Harrison and the freeholder via the managing agents ultimately agreed on sum of £6,000 . If he not met the deadline, the sum would have escalated by at least £1,075.
In 2010 we were e-mailed by Dr Cameron Moore who, having owned a garden flat in Cheadle Hulme in April 1998. We are asked if we could approximate the premium would likely be for a ninety year extension to my lease. Comparable flats in Cheadle Hulme with 100 year plus lease were in the region of £181,600. The mid-range ground rent payable was £55 collected per annum. The lease lapsed in 2078. Having 52 years outstanding we estimated the premium to the freeholder for the lease extension to be within £30,400 and £35,200 plus professional charges.
Last Summer we were e-mailed by Mr and Mrs. K Lee , who purchased a ground floor flat in Cheadle Hulme in October 1996. We are asked if we could approximate the price would be for a ninety year lease extension. Identical flats in Cheadle Hulme with a long lease were in the region of £285,000. The average ground rent payable was £45 invoiced yearly. The lease elapsed on 23 July 2098. Having 72 years as a residual term we calculated the premium to the freeholder for the lease extension to be between £12,400 and £14,200 exclusive of costs.