As the the remaining lease term of a Cheadle Hulme domestic lease decreases so does its value and therefore the value of your property. If the residual term has, over 125 years remaining then this decrease may be of little impact however 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 termed as a marriage value. This could be significant. It is the main reason why you should extend the lease without delay. Many flat owners in Cheadle Hulme will qualify for this right; that being said a conveyancer can advise if you are eligible to extend your lease. In certain situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
Leasehold premises in Cheadle Hulme with more than 100 years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges merit 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Regardless of whether you are a tenant or a landlord in Cheadle Hulme,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Cheadle Hulme valuers.
Half a year ago Alex, started to get close to the 80-year threshold with the lease on his garden apartment in Cheadle Hulme. In buying his property two decades ago, the length of the lease was of minimal interest. Luckily, he realised he needed to take action soon on Extending the lease. Alex arranged for a lease extension just ahead of time last August. Alex and the freeholder via the management company ultimately settled on the final figure of £5,500 . If the lease had descended to less than 80 years, the figure would have escalated by at least £850.
Ms V Gunderson moved into a first floor apartment in Cheadle Hulme in June 1995. The dilemma was if we could approximate the premium would likely be for a 90 year lease extension. Comparative homes in Cheadle Hulme with an extended lease were valued about £166,800. The average ground rent payable was £50 collected yearly. The lease lapsed in 2076. Considering the 50 years unexpired we approximated the compensation to the landlord for the lease extension to be between £32,300 and £37,400 exclusive of fees.
Mr and Mrs. H Carter bought a ground floor apartment in Cheadle Hulme in October 2003. The question was if we could approximate the price could be to prolong the lease by an additional years. Similar flats in Cheadle Hulme with an extended lease were worth £280,000. The average ground rent payable was £45 collected yearly. The lease terminated in 2096. Taking into account 70 years left we estimated the premium to the landlord for the lease extension to be between £12,400 and £14,200 plus expenses.