When it comes to residential leasehold property in Cheetham, you are in fact renting it for a certain amount of time. These days flat leases are usually granted for 99 years or 125. Even though this may appear like a long period of time, you should think about extending the lease sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease becomes disproportionately greater particularly once there are fewer than 80 years remaining. Residents in Cheetham with a lease approaching 81 years remaining should seriously think of extending it without delay. When a lease has fewer than eighty years remaining, under the relevant statute the landlord is entitled to calculate and charge a greater premium, assessed on a technical computation, strangely termed as “marriage value” which is due.
It is generally accepted that a property with in excess of 100 years remaining is worth approximately the equivalent 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 many years ahead.
| Lender | Requirement |
|---|---|
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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. |
The lawyers that we work with undertake Cheetham lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
Leon was the the leasehold proprietor of a 2 bedroom flat in Cheetham on the market with a lease of a few days over 72 years unexpired. Leon informally approached his freeholder a well known Bristol-based freehold company for a lease extension. The landlord was keen to give an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent at the outset set at £100 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Leon to exercise his statutory right. Leon procured expert legal guidance and was able to make an informed decision and handle with the matter and sell the property.
Ms Gemma Jackson took over the lease of a basement flat in Cheetham in January 2009. The dilemma was if we could approximate the compensation to the landlord could be for a ninety year extension to my lease. Comparative residencies in Cheetham with 100 year plus lease were valued around £205,000. The mid-range amount of ground rent was £50 collected quarterly. The lease finished in 2105. Considering the 79 years outstanding we approximated the compensation to the landlord to extend the lease to be between £7,600 and £8,800 plus costs.
Mr Ben Scott purchased a one bedroom flat in Cheetham in September 2011. We are asked if we could shed any light on how much (approximately) price would be for a ninety year extension to my lease. Comparative residencies in Cheetham with a long lease were in the region of £275,000. The mid-range amount of ground rent was £65 invoiced every twelve months. The lease finished on 9 September 2094. Considering the 68 years left we calculated the compensation to the landlord for the lease extension to be between £13,300 and £15,400 not including legals.