It’s a harsh certainty that a Cherry Willingham residential lease is a deteriorating asset. As the lease term diminishes so does the value of the property. The extent of this is taken for granted in the early years due to the depreciation being disguised by increases in the Cherry Willingham property market.Where your lease has approximately 90 years left, you should start thinking about a lease extension. If the number of years remaining drops under 80 years, you will then be required to pay 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 Most flat owners in Cherry Willingham will be able to extend under the legislation; however a conveyancing solicitor will be able to clarify whether you qualify for an extension. In some situations you may not be entitled. There are also strict timeframes and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancer throughout the process.
Leasehold residencies in Cherry Willingham with over one hundred years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little upside in buying the freehold unless savings on ground rent and estate charges merit it.
| 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. |
| Coventry Building Society | 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. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
Lease extensions in Cherry Willingham can be a difficult process. We recommend you procure guidance from a conveyancer 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 procuring Cherry Willingham lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Harrison owned a 2 bedroom flat in Cherry Willingham being marketed with a lease of just over sixty years unexpired. Harrison on an informal basis approached his freeholder a well known Bristol-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years subject to a new rent at the outset set at £200 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Harrison to invoke his statutory right. Harrison procured expert advice and secured an acceptable resolution informally and sell the flat.
Last month we were called by Mr N Bailey , who acquired a studio apartment in Cherry Willingham in February 1995. We are asked if we could shed any light on how much (approximately) compensation to the landlord would likely be to prolong the lease by a further 90 years. Similar properties in Cherry Willingham with an extended lease were valued around £248,000. The average amount of ground rent was £65 billed per annum. The lease end date was in 2089. Having 63 years as a residual term we approximated the compensation to the landlord to extend the lease to be within £20,900 and £24,200 exclusive of fees.
In 2013 we were phoned by Dr Arthur Norbert who, having completed a studio flat in Cherry Willingham in September 2011. We are asked if we could shed any light on how much (approximately) premium would likely be for a ninety year extension to my lease. Comparable flats in Cherry Willingham with a long lease were in the region of £181,600. The average ground rent payable was £55 collected annually. The lease finished in 2078. Given that there were 52 years unexpired we calculated the compensation to the landlord to extend the lease to be within £30,400 and £35,200 not including fees.