The re-sale value of a leasehold property in Cheetham is impacted by how long the lease has remaining. If it is close to or less than eighty years you should expect problems on re-sale, so it is recommended to arrange for the lease to be extended before purchasing. It is preferable to start the process of extending the lease is when a lease still has 82 years to run so that all matters can be addressed prior to the 80 year cut off point. Current legislation enables Cheetham qualifying lessees to a 90 year extension added to their unexpired lease term (ie if your lease has 50 years remaining the statutory lease extension will provide a new term of 140 years). The intention of the valuation is to arrive at an opinion of the sum payable by the lessee to the freeholder for the purchase of the lease extension.
It is conventional wisdom that a residential leasehold with more than 100 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 residence will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Cheetham can be a difficult process. We recommend you get guidance from a conveyancing solicitor and valuer 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 procuring Cheetham lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Off the back of unsuccessful discussions with the freeholder of her one bedroom flat in Cheetham, Eleanor initiated the lease extension process as the eighty year threshold was rapidly advancing. The transaction was concluded in September 2006. The freeholder’s fees were negotiated to about 650 GBP.
Last May we were contacted by Mr and Mrs. C Rodríguez , who took over the lease of a recently refurbished apartment in Cheetham in August 2006. The question was if we could shed any light on how much (approximately) premium would likely be for a ninety year lease extension. Identical homes in Cheetham with 100 year plus lease were in the region of £208,600. The average ground rent payable was £60 collected quarterly. The lease terminated on 18 October 2082. Given that there were 57 years remaining we calculated the compensation to the landlord for the lease extension to be within £30,400 and £35,200 plus fees.
Last Winter we were contacted by Mrs Maisie Green , who moved into a basement apartment in Cheetham in March 2007. The question was if we could shed any light on how much (approximately) price would likely be to extend the lease by 90 years. Identical premises in Cheetham with 100 year plus lease were valued around £200,000. The mid-range amount of ground rent was £50 invoiced quarterly. The lease elapsed on 15 February 2102. Taking into account 77 years unexpired we calculated the compensation to the landlord for the lease extension to be within £8,600 and £9,800 not including costs.