It’s an underpublicised certainty that a Cheetham residential lease is a deteriorating asset. The lease value drops in proportion to its lease length. The extent of this is taken for granted in the first few years due to the loss of value being disguised by increases in the Cheetham property prices.Where your lease has approximately ninety years left, you need to start considering a lease extension. If the number of years remaining drops under eighty years, you will end up paying half of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. The marriage fee is the amount of additional value that a lease extension will add the property The majority of leasehold owners in Cheetham will be able to extend under the legislation; however a lawyer will be able to confirm if you are eligibility. In some situations you may not qualify. There are also strict deadlines and procedures to follow once the process has commenced and you will need to be guided by your conveyancer throughout the process.
Leasehold premises in Cheetham with in excess of one hundred years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little upside in buying the freehold unless savings on ground rent and maintenance charges warrant it.
Lender | Requirement |
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Bank of Scotland | Minimum 70 years from the date of the mortgage. |
Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
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. |
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. |
Lease extensions in Cheetham can be a difficult process. We recommend you get professional help from a conveyancing solicitor and surveyor with experience in lease extensions.
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.
Thomas owned a conversion apartment in Cheetham on the market with a lease of a few days over 61 years unexpired. Thomas informally contacted his landlord a well known Bristol-based freehold company for a lease extension. The freeholder was prepared to agree an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £200 annually. Ordinarily, ground rent would not be payable on a lease extension were Thomas to exercise his statutory right. Thomas procured expert advice and secured an acceptable resolution without resorting to tribunal and sell the flat.
In 2011 we were contacted by Dr Owen Miller who, having purchased a purpose-built flat in Cheetham in July 1997. We are asked if we could shed any light on how much (roughly) premium could be to extend the lease by a further 90 years. Comparable properties in Cheetham with an extended lease were in the region of £300,000. The average amount of ground rent was £50 billed per annum. The lease lapsed on 8 September 2100. Considering the 75 years left we estimated the premium to the landlord for the lease extension to be within £8,600 and £9,800 plus professional charges.
Last Christmas we were e-mailed by Mrs Isabella López , who purchased a one bedroom flat in Cheetham in April 2009. The question was if we could shed any light on how much (approximately) premium would likely be for a 90 year extension to my lease. Comparable properties in Cheetham with a long lease were valued around £252,800. The mid-range ground rent payable was £65 collected monthly. The lease expired on 6 November 2090. Given that there were 65 years left we estimated the premium to the landlord to extend the lease to be between £18,100 and £20,800 plus expenses.