As the the remaining lease term of a Cheddar domestic lease decreases so does its value and therefore the value of your property. If the residual term has, over one hundred years to run then this decrease may be negligible nevertheless there will become a stage when a lease has less than 80 years remaining as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the main logic behind why you should extend the lease without delay. Most flat owners in Cheddar will qualify for this right; nevertheless a lawyer will be able to advise whether you are eligible for a lease extension. In certain situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
Leasehold premises in Cheddar with in excess of 100 years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth 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 maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Coventry Building Society | |
| Halifax | |
| Skipton Building Society | |
| The Mortgage Works | |
| Virgin |
Lease extensions in Cheddar can be a difficult process. We recommend you secure professional help from a conveyancing solicitor and valuer with experience in this area.
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 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.
Archie was the the leasehold proprietor of a 2 bedroom flat in Cheddar on the market with a lease of fraction over 61 years unexpired. Archie on an informal basis approached his freeholder a well known London-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years subject to a rise in the rent to £50 annually. Ordinarily, ground rent would not be payable on a lease extension were Archie to invoke his statutory right. Archie procured expert legal guidance and secured satisfactory deal without going to tribunal and ending up with a market value flat.
Dr H Howard bought a garden apartment in Cheddar in May 1999. The question was if we could estimate the price would be for a 90 year lease extension. Comparable residencies in Cheddar with a long lease were worth £242,600. The mid-range ground rent payable was £45 billed per annum. The lease expired on 26 November 2093. Considering the 67 years left we approximated the compensation to the freeholder for the lease extension to be between £11,400 and £13,200 not including costs.
Dr Ryan Richardson purchased a basement flat in Cheddar in September 2004. The dilemma was if we could approximate the price would be for a ninety year lease extension. Comparative residencies in Cheddar with a long lease were valued around £280,000. The average ground rent payable was £55 billed monthly. The lease ran out in 2104. Having 78 years left we calculated the compensation to the freeholder for the lease extension to be between £13,300 and £15,400 not including fees.