It’s a harsh certainty that a Cheddar residential lease is a deteriorating asset. As the lease term reduces so does the value of the property. The extent of this is not fully appreciated in the first few years due to the reduction being disguised by increases in the Cheddar property prices.Once your lease nears 85ish years, you should start thinking about 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 lower than eighty years - otherwise a higher amount will be due. The majority of leasehold owners in Cheddar will be able to extend under the legislation; however a conveyancer should be able to confirm whether you are eligibility. In some cases you may not qualify. There are also strict timeframes and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancer from beginning to end of the process.
Leasehold properties in Cheddar with in excess of 100 years remaining on the lease are often referred to as ‘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 estate charges justify it.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| 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 get professional help from a lawyer and surveyor with experience in lease extensions.
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 a wealth of experience dealing with Cheddar lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Subsequent to lengthy discussions with the freeholder of her ground floor apartment in Cheddar, Amelia initiated the lease extension process just as her lease was approaching the critical eighty-year mark. The legal work was concluded in February 2010. The landlord’s costs were kept to an absolute minimum.
In 2010 we were phoned by Ms Sian Lefebvre who, having owned a garden apartment in Cheddar in April 2005. The dilemma was if we could approximate the price could be to prolong the lease by ninety years. Identical flats in Cheddar with 100 year plus lease were in the region of £200,800. The mid-range ground rent payable was £65 collected per annum. The lease ran out in 2086. Taking into account 60 years as a residual term we approximated the compensation to the freeholder to extend the lease to be between £20,900 and £24,200 plus professional charges.
Dr O Green acquired a ground floor flat in Cheddar in November 2000. The question was if we could approximate the price would likely be to extend the lease by a further 90 years. Comparative residencies in Cheddar with 100 year plus lease were valued around £255,000. The mid-range amount of ground rent was £50 billed annually. The lease ran out on 13 October 2097. Considering the 71 years remaining we approximated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 not including professional charges.