Unfortunately that a Cheddleton residential lease is a deteriorating asset. The lease value reduces in proportion to its lease length. The extent of this is not fully appreciated in the first few years due to the depreciation being disguised by increases in the Cheddleton property prices.Once your lease gets to 85ish years, you need to 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 premium will be payable. Most leasehold owners in Cheddleton will be able to extend under the legislation; however a conveyancer will be able to confirm whether you qualify for an extension. In some situations you may not be entitled. There are also strict timeframes and procedures to be adhered to once the process is instigated and you will need to be guided by your conveyancer throughout the process.
Leasehold residencies in Cheddleton with more than one hundred years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Cheddleton can be a difficult process. We recommend you secure professional help from a conveyancer and surveyor well versed in the legislation and lease extension process.
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 in-depth market knowledge 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.
Kai owned a conversion flat in Cheddleton on the market with a lease of a few days over sixty years left. Kai informally approached his landlord being a well known London-based freehold company and enquired on a premium to extend the lease. The landlord was keen to give an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £125 annually. Ordinarily, ground rent would not be payable on a lease extension were Kai to exercise his statutory right. Kai obtained expert legal guidance and was able to make an informed decision and handle with the matter and sell the flat.
Last Spring we were phoned by Mr and Mrs. N Ramírez , who moved into a newly refurbished apartment in Cheddleton in February 2004. The dilemma was if we could estimate the price would likely be to extend the lease by 90 years. Similar properties in Cheddleton with a long lease were in the region of £250,000. The mid-range ground rent payable was £50 collected per annum. The lease lapsed in 2095. Given that there were 69 years as a residual term we calculated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 exclusive of costs.
Last September we were contacted by Dr S Michel , who was assigned a lease of a studio apartment in Cheddleton in September 1997. We are asked if we could approximate the compensation to the landlord would be for a 90 year lease extension. Comparative homes in Cheddleton with 100 year plus lease were in the region of £285,000. The mid-range amount of ground rent was £55 billed yearly. The lease ran out in 2106. Having 80 years left we calculated the premium to the landlord for the lease extension to be between £12,400 and £14,200 exclusive of expenses.