It’s a harsh certainty that a Cheadle residential lease is a deteriorating asset. As the lease term reduces so does the value of the property. The extent of this is taken for granted in the first few years due to the loss of value being disguised by increases in the Cheadle property prices.Once your lease gets to 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 slips under eighty years - otherwise a higher amount will be payable. Most leasehold owners in Cheadle will be able to extend under the legislation; however a lawyer will be able to confirm if you qualify for an extension. In some situations you may not qualify. There are also strict timetables and procedures to follow once the process has commenced and you will need to be guided by your conveyancer throughout the process.
Leasehold residencies in Cheadle with in excess of 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 warrant it.
| Lender | Requirement |
|---|---|
| Chelsea Building Society | |
| Coventry Building Society | |
| Santander | |
| Royal Bank of Scotland | |
| Virgin |
Irrespective of whether you are a tenant or a freeholder in Cheadle,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Cheadle valuers.
Two years ago Harry, started to get close to the 80-year threshold with the lease on his purpose- built apartment in Cheadle. In buying his flat 18 years ago, the unexpired term was of little concern. As luck would have it, he noticed he would imminently be paying an escalated premium for Extending the lease. Harry was able to extend his lease just under the wire last September. Harry and the freeholder ultimately agreed on an amount of £6,000 . If he not met the deadline, the price would have gone up by a minimum £1,125.
Last Winter we were e-mailed by Ms Isabelle Reed , who was assigned a lease of a one bedroom apartment in Cheadle in February 2011. The question was if we could approximate the compensation to the landlord would be for a ninety year lease extension. Identical residencies in Cheadle with a long lease were in the region of £166,400. The mid-range amount of ground rent was £60 billed yearly. The lease came to a finish in 2080. Having 54 years left we calculated the premium to the freeholder to extend the lease to be within £32,300 and £37,400 not including expenses.
Last Autumn we were contacted by Mrs L Díaz , who was assigned a lease of a purpose-built apartment in Cheadle in May 1997. The question was if we could approximate the compensation to the landlord would be for a 90 year lease extension. Identical homes in Cheadle with 100 year plus lease were in the region of £232,800. The mid-range amount of ground rent was £45 invoiced quarterly. The lease came to a finish on 18 August 2091. Taking into account 65 years outstanding we calculated the premium to the landlord for the lease extension to be within £13,300 and £15,400 not including professional charges.