Unfortunately that a Cherry Burton residential lease is a deteriorating asset. As the lease term reduces so does the value of the property. The extent of this is not fully appreciated in the first few years due to the depreciation being disguised by increases in the Cherry Burton property prices.Where your lease has approximately 90 years left, you need to start considering a lease extension. If the number of years remaining dips below eighty years, you will then be required to pay 50% of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add the property Most leasehold owners in Cherry Burton will be able to extend under the legislation; however a lawyer will be able to clarify if you are eligibility. In some cases you may not be entitled. There are also strict timeframes and procedures to follow once the process has commenced and you will need to be guided by your conveyancing solicitor from beginning to end of the process.
Leasehold premises in Cherry Burton with in excess of one hundred years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance 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. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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. |
The lawyers that we work with handle Cherry Burton 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 lawyer we work with provide it.
Jack owned a studio apartment in Cherry Burton being sold with a lease of a few days over 72 years left. Jack on an informal basis approached his landlord a well known London-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent initially set at £100 per annum and increase every 25 years thereafter. No ground rent would be due on a lease extension were Jack to exercise his statutory right. Jack procured expert legal guidance and was able to make a more informed judgement and handle with the matter and ending up with a market value flat.
Last Winter we were approach by Dr J David , who moved into a studio apartment in Cherry Burton in August 1995. We are asked if we could shed any light on how much (roughly) premium would likely be to extend the lease by a further 90 years. Similar flats in Cherry Burton with an extended lease were worth £227,800. The average amount of ground rent was £45 invoiced annually. The lease came to a finish on 20 June 2090. Considering the 65 years left we estimated the compensation to the landlord to extend the lease to be between £13,300 and £15,400 exclusive of legals.
Mr and Mrs. V Morel bought a ground floor apartment in Cherry Burton in February 2003. The dilemma was if we could estimate the premium would be for a 90 year lease extension. Comparative residencies in Cherry Burton with 100 year plus lease were valued around £275,000. The average ground rent payable was £55 billed annually. The lease came to a finish on 13 May 2101. Given that there were 76 years outstanding we estimated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 not including professional charges.