Cheddleton leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease gets more expensive. It is the case that most Cheddleton tenants have the right to extend their lease by an additional ninety years under the 1993 Leasehold Reform Act. Where you are a leasehold owner in Cheddleton you really ought to see if your lease has between 70 and 90 years remaining. In particular once the remaining lease term slips under eighty years, the compensation to the landlord for any lease extension sharply increases as part of the premium you will incur is what is known as a marriage value
Leasehold properties in Cheddleton with over 100 years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| 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 |
Retaining our service gives you enhanced control over the value of your Cheddleton leasehold, as your property will be more valuable and marketable in respect of lease length should you want to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Off the back of protracted discussions with the landlord of her basement flat in Cheddleton, Hollie commenced the lease extension process as the eighty year deadline was fast approaching. The legal work was concluded in July 2011. The landlord’s costs were kept to an absolute minimum.
In 2009 we were phoned by Dr Sam Lambert who, having purchased a ground floor apartment in Cheddleton in January 2006. The question was if we could estimate the premium could be to extend the lease by ninety years. Similar properties in Cheddleton with 100 year plus lease were worth £285,000. The average ground rent payable was £55 invoiced monthly. The lease end date was on 27 June 2104. Considering the 79 years left we calculated the compensation to the landlord for the lease extension to be within £13,300 and £15,400 plus expenses.
Last Autumn we were contacted by Mr and Mrs. G Moreau , who was assigned a lease of a one bedroom flat in Cheddleton in August 2003. We are asked if we could shed any light on how much (roughly) compensation to the landlord would be to extend the lease by a further 90 years. Identical homes in Cheddleton with an extended lease were in the region of £193,400. The mid-range ground rent payable was £65 invoiced annually. The lease ended in 2084. Considering the 59 years outstanding we calculated the compensation to the landlord to extend the lease to be between £21,900 and £25,200 exclusive of fees.