On the balance of probabilities where you own a flat in Cheadle you actually own a long leasehold interest over your property
Leasehold premises in Cheadle with in excess of 100 years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Coventry Building Society | 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. |
| 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. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| 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 |
Using our service will provide you enhanced control over the value of your Cheadle leasehold, as your property will be more valuable and marketable in respect of lease length should you wish to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Sebastian was the the leasehold proprietor of a high value flat in Cheadle on the market with a lease of a few days over sixty years outstanding. Sebastian on an informal basis approached his freeholder being a well known London-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 £150 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 obtained expert legal guidance and was able to make a more informed judgement and handle with the matter and sell the flat.
Mrs Samantha Brooks took over the lease of a one bedroom flat in Cheadle in May 2002. We are asked if we could shed any light on how much (roughly) price would likely be to prolong the lease by a further 90 years. Identical residencies in Cheadle with a long lease were in the region of £208,200. The mid-range ground rent payable was £65 collected monthly. The lease finished on 18 October 2087. Having 61 years unexpired we approximated the compensation to the landlord to extend the lease to be between £20,000 and £23,000 plus legals.
Last April we were called by Dr Adam Kelly , who acquired a first floor flat in Cheadle in July 2001. The question was if we could shed any light on how much (approximately) price could be for a 90 year extension to my lease. Similar flats in Cheadle with an extended lease were valued about £260,000. The average ground rent payable was £50 collected monthly. The lease came to a finish in 2098. Having 72 years remaining we estimated the compensation to the freeholder to extend the lease to be between £9,500 and £11,000 exclusive of costs.