With a domestic leasehold property in Cheadle, you are actually buying a right to live in a property for a set period of time. These days flat leases are usually granted for 99 years or 125. Even though this may appear like a long period of time, you should think about extending the lease sooner as opposed to later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly notably when there are less than eighty years remaining. Anyone in Cheadle with a lease nearing 81 years left should seriously consider extending it as soon as possible. Once a lease has less than eighty years outstanding, under the current legislation the landlord is entitled to calculate and demand a greater premium, assessed on a technical calculation, known as “marriage value” which is due.
Leasehold properties in Cheadle with in excess of one hundred years left on the lease are sometimes 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 maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| 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. |
Lease extensions in Cheadle can be a difficult process. We recommend you secure guidance from a lawyer 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 dealing with Cheadle 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 eight months of lengthy negotiations with the freeholder of her garden flat in Cheadle, Kirsty commenced the lease extension process as the 80 year threshold was fast approaching. The legal work was finalised in August 2008. The landlord’s charges were kept to an absolute minimum.
Last Summer we were called by Mrs Jodie Jackson , who bought a one bedroom apartment in Cheadle in September 2011. The question was if we could shed any light on how much (roughly) compensation to the landlord would be for a 90 year extension to my lease. Similar homes in Cheadle with a long lease were worth £275,000. The mid-range amount of ground rent was £55 billed yearly. The lease terminated on 16 May 2101. Taking into account 76 years unexpired we calculated the compensation to the landlord to extend the lease to be between £13,300 and £15,400 exclusive of professional charges.
In 2009 we were phoned by Dr Y Martínez who, having purchased a one bedroom apartment in Cheadle in May 2001. The dilemma was if we could approximate the price would likely be to extend the lease by a further 90 years. Identical premises in Cheadle with a long lease were worth £181,200. The average ground rent payable was £65 billed annually. The lease ran out on 25 January 2081. Considering the 56 years left we estimated the premium to the landlord to extend the lease to be between £29,500 and £34,000 exclusive of fees.