There is no doubt about it a leasehold flat or house in Cheddleton is a wasting asset as a result of the shortening lease. If the residual term has, in excess of one hundred years to run then this decrease may be negligible however there will become a point in time when a lease has less than eighty years left as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the main reason why you should consider extending sooner rather than later. Most flat owners in Cheddleton will qualify for this right; nevertheless a conveyancing solicitor can confirm whether you are eligible to extend your lease. In certain situations you may not qualify, the most frequent reason being that you have owned the property for less than two years.
Leasehold properties in Cheddleton with over one hundred years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| 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. |
| Godiva Mortgages | 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. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Yorkshire 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. |
Irrespective of whether you are a tenant or a landlord in Cheddleton,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Cheddleton valuers.
Two years ago Muhammad, came seriously close to the 80-year threshold with the lease on his ground floor flat in Cheddleton. In buying his property 18 years previously, the lease term was of no interest. by good luck, he noticed he would imminently be paying an escalated premium for Extending the lease. Muhammad arranged for a lease extension just under the wire in April. Muhammad and the landlord who owned the flat above subsequently agreed on sum of £5,500 . If he had missed the deadline, the price would have escalated by at least £1,050.
In 2013 we were phoned by Mr and Mrs. F Sánchez who, having completed a garden apartment in Cheddleton in June 2002. We are asked if we could approximate the compensation to the landlord would likely be to prolong the lease by ninety years. Similar residencies in Cheddleton with an extended lease were valued around £218,000. The average ground rent payable was £45 invoiced yearly. The lease ran out in 2089. Taking into account 63 years unexpired we calculated the premium to the freeholder to extend the lease to be within £17,100 and £19,800 not including professional charges.
In 2010 we were called by Mr Andrew Bonnet who, having moved into a one bedroom apartment in Cheddleton in August 2003. The dilemma was if we could estimate the compensation to the landlord would be for a 90 year extension to my lease. Comparable homes in Cheddleton with 100 year plus lease were worth £270,000. The mid-range amount of ground rent was £55 invoiced quarterly. The lease terminated in 2100. Given that there were 74 years remaining we approximated the premium to the landlord to extend the lease to be between £9,500 and £11,000 plus fees.