It’s an underpublicised truth that a Cheadle 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 loss of value being disguised by increases in the Cheadle property market.Once your lease nears 85ish years, you need to 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 dips below eighty years - otherwise a higher premium will be payable. The majority of flat owners in Cheadle will be able to extend under the legislation; however a conveyancer should be able to confirm whether you qualify for an extension. In some cases you may not be entitled. There are also strict deadlines and procedures to be adhered to once the process is initiated and you will need to be guided by your lawyer throughout the process.
Leasehold residencies in Cheadle with in excess of one hundred years outstanding on the lease are sometimes referred to as ‘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 buying the freehold unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Coventry Building Society | |
| Halifax | |
| Leeds Building Society | |
| National Westminster Bank | |
| Skipton Building Society |
Using our service gives you increased control over the value of your Cheadle leasehold, as your property will be more valuable and saleable in relation to the lease length should you wish to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Ibrahim was the the leasehold proprietor of a conversion apartment in Cheadle on the market with a lease of a few days over sixty years unexpired. Ibrahim on an informal basis approached his freeholder a well known local-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to agree an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £125 yearly. No ground rent would be due on a lease extension were Ibrahim to invoke his statutory right. Ibrahim procured expert advice and was able to make an informed judgement and deal with the matter and readily saleable.
Last Summer we were contacted by Mrs Abbie Jackson , who took over the lease of a garden apartment in Cheadle in November 2005. We are asked if we could estimate the premium would be for a 90 year extension to my lease. Similar properties in Cheadle with an extended lease were valued around £265,000. The average amount of ground rent was £50 collected monthly. The lease lapsed in 2099. Given that there were 73 years unexpired we calculated the premium to the landlord for the lease extension to be between £9,500 and £11,000 not including expenses.
Last month we were e-mailed by Dr D García , who acquired a first floor flat in Cheadle in February 1999. We are asked if we could estimate the compensation to the landlord would be for a 90 year extension to my lease. Comparable premises in Cheadle with 100 year plus lease were valued about £264,000. The mid-range ground rent payable was £60 billed monthly. The lease lapsed on 13 March 2079. Having 53 years unexpired we approximated the compensation to the landlord for the lease extension to be within £37,100 and £42,800 exclusive of legals.