With a residential leasehold property in Cheddar, you are in fact renting it for a certain amount of time. In recent years flat leases typically tend to be for 99 years or 125. Even though this may appear like a long period of time, you should think about a lease extension sooner rather than later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly especially when there are less than 80 years remaining. Anyone in Cheddar with a lease nearing 81 years unexpired should seriously think of extending it sooner rather than later. When the lease term has below eighty years left, under the relevant statute the landlord can calculate and charge a greater premium, based on a technical computation, known as “marriage value” which is payable.
It is conventional wisdom that a property with in excess of one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional 90 years added to any lease with more than 45 years unexpired, the residence will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| Yorkshire 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. |
Lease extensions in Cheddar can be a difficult process. We recommend you procure guidance from a conveyancer 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 procuring Cheddar lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
During the course of the last few months Andrew, came dangerously close to the eighty-year threshold with the lease on his garden apartment in Cheddar. In buying his home two decades ago, the lease term was of little bearing. Thankfully, he realised he would imminently be paying way over the odds for Extending the lease. Andrew arranged for a lease extension just under the wire last May. Andrew and the landlord who owned the flat above eventually agreed on a premium of £5,500 . If the lease had descended lower than eighty years, the price would have escalated by at least £1,025.
In 2009 we were contacted by Mr and Mrs. T Campbell who, having was assigned a lease of a one bedroom flat in Cheddar in August 2009. We are asked if we could estimate the compensation to the landlord would likely be for a 90 year lease extension. Comparable flats in Cheddar with 100 year plus lease were in the region of £275,000. The average ground rent payable was £55 collected monthly. The lease termination date was on 7 January 2102. Taking into account 77 years left we estimated the compensation to the freeholder for the lease extension to be between £13,300 and £15,400 not including costs.
In 2009 we were e-mailed by Dr E González who, having took over the lease of a studio flat in Cheddar in June 2010. We are asked if we could estimate the compensation to the landlord would likely be to prolong the lease by a further 90 years. Comparative properties in Cheddar with a long lease were in the region of £183,600. The average amount of ground rent was £65 invoiced monthly. The lease ended in 2082. Given that there were 57 years as a residual term we calculated the premium to the freeholder to extend the lease to be within £28,500 and £33,000 not including legals.