The market value of a leasehold property in Cherry Burton is impacted by how long the lease has remaining. If it is near to or less than 80 years you should envisage difficulties on re-sale, so it is recommended to arrange for a lease extension prior to buying. It is ideal to start the process of extending the lease is when a lease still has 82 years unexpired so that a lease extension can be addressed in advance of the 80 year cut off point. Current legislation entitles Cherry Burton qualifying lessees to obtain a new lease which will be for the balance of the existing lease plus a further term of 90 years. The reason of the valuation is to arrive at an opinion of the premium payable by the lessee to the freeholder for the purchase of the lease extension.
Leasehold premises in Cherry Burton with more than 100 years left on the lease are sometimes referred to as ‘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 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date 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 |
| 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 Cherry Burton can be a difficult process. We recommend you secure guidance from a lawyer and valuer 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 in-depth market knowledge dealing with Cherry Burton lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Subsequent to protracted negotiations with the freeholder of her first floor flat in Cherry Burton, Courtney initiated the lease extension process just as the lease was approaching the crucial eighty-year deadline. The lease extension was concluded in January 2005. The landlord’s fees were kept to an absolute minimum.
In 2009 we were contacted by Ms Abbie Jackson who, having was assigned a lease of a one bedroom flat in Cherry Burton in August 1997. The dilemma was if we could approximate the price could be for a 90 year extension to my lease. Identical premises in Cherry Burton with 100 year plus lease were in the region of £173,800. The average ground rent payable was £60 billed annually. The lease came to a finish in 2081. Considering the 55 years left we estimated the compensation to the freeholder to extend the lease to be between £31,400 and £36,200 plus fees.
Last Autumn we were approach by Mr and Mrs. C Bell , who completed a purpose-built apartment in Cherry Burton in May 1997. We are asked if we could approximate the price would be for a 90 year lease extension. Similar residencies in Cherry Burton with a long lease were valued about £235,200. The average ground rent payable was £45 collected annually. The lease end date was in 2092. Given that there were 66 years unexpired we approximated the premium to the freeholder for the lease extension to be within £12,400 and £14,200 not including professional charges.