With a residential leasehold property in Cheddleton, you effectively rent it for a certain period of time. Modern flat leases are usually granted for 99 years or 125. Even though this may appear like a long period of time, you may think about extending the lease sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease gets disproportionately more expensive especially once there are fewer than 80 years remaining. Leasehold owners in Cheddleton with a lease nearing 81 years remaining should seriously consider extending it without delay. Once the lease term has below eighty years remaining, under the relevant legislation the landlord is entitled to calculate and levy a greater premium, based on a technical multiplication, strangely termed as “marriage value” which is payable.
It is conventional wisdom that a residential leasehold with in excess of 100 years remaining is worth roughly the equivalent as a freehold. Where an further 90 years added to any lease with more than 30 years remaining, the premises will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Leeds Building Society | |
| National Westminster Bank | |
| Nationwide Building Society | |
| Santander | |
| Virgin |
The conveyancers that we work with undertake Cheddleton lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
Jude was the the leasehold owner of a conversion apartment in Cheddleton on the market with a lease of a few days over 72 years remaining. Jude on an informal basis spoke with his freeholder being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to a rise in the rent to £50 per annum. No ground rent would be payable on a lease extension were Jude to exercise his statutory right. Jude obtained expert legal guidance and secured an acceptable resolution without going to tribunal and sell the flat.
In 2014 we were phoned by Dr P François who, having completed a basement apartment in Cheddleton in January 1995. The question was if we could shed any light on how much (roughly) price could be for a ninety year extension to my lease. Comparable properties in Cheddleton with 100 year plus lease were valued about £270,000. The mid-range amount of ground rent was £55 collected per annum. The lease finished in 2102. Given that there were 76 years remaining we calculated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 not including legals.
In 2014 we were called by Dr Y Moreau who, having acquired a basement apartment in Cheddleton in April 2001. We are asked if we could shed any light on how much (roughly) price would likely be for a 90 year extension to my lease. Comparable homes in Cheddleton with an extended lease were valued around £173,800. The average amount of ground rent was £65 collected annually. The lease end date was on 5 September 2081. Considering the 55 years outstanding we calculated the premium to the freeholder to extend the lease to be between £31,400 and £36,200 plus professional charges.