It’s a harsh truth that a Cheddleton residential lease is a wasting asset. The lease value reduces in proportion to its lease length. The extent of this is not fully appreciated in the early years due to the loss of value being disguised by increases in the Cheddleton property market.Once your lease gets to 85ish years, you should 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 falls below 80 years - otherwise a higher amount will be payable. The majority of flat owners in Cheddleton will be able to extend under the legislation; however a conveyancer will be able to confirm if you are eligibility. In some situations you may not be entitled. There are also strict deadlines and procedures to be adhered to once the process is instigated and you will need to be guided by your lawyer for the duration of the process.
It is conventional wisdom that a property with over one hundred years unexpired lease term is worth approximately the same as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
Lease extensions in Cheddleton can be a difficult process. We recommend you get professional help from a conveyancing solicitor and surveyor 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 dealing with Cheddleton lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last Christmas Alex, came seriously close to the 80-year mark with the lease on his ground floor apartment in Cheddleton. Having purchased his home two decades ago, the unexpired term was of minimal concern. Thankfully, he became aware that he would imminently be paying way over the odds for a lease extension. Alex was able to extend his lease at the eleventh hour last June. Alex and the landlord who owned the flat above eventually settled on the final figure of £5,000 . If the lease had dropped to less than 80 years, the premium would have escalated by at least £875.
Mrs Kelsey Roux acquired a one bedroom apartment in Cheddleton in September 2003. We are asked if we could approximate the premium could be to prolong the lease by an additional years. Comparable homes in Cheddleton with an extended lease were valued about £237,600. The average amount of ground rent was £45 collected quarterly. The lease concluded in 2092. Given that there were 67 years outstanding we calculated the compensation to the landlord to extend the lease to be within £11,400 and £13,200 plus legals.
Last Christmas we were phoned by Ms S Martinez , who completed a garden apartment in Cheddleton in April 2005. The dilemma was if we could shed any light on how much (roughly) premium would be for a ninety year extension to my lease. Identical homes in Cheddleton with a long lease were in the region of £280,000. The mid-range ground rent payable was £55 invoiced quarterly. The lease terminated in 2103. Given that there were 78 years unexpired we approximated the compensation to the freeholder to extend the lease to be between £13,300 and £15,400 not including costs.