North Cheam leases on residential properties are gradually losing value. Where your lease has about 90 years remaining, you should start considering the need for a lease extension. If lease term falls under 80 years, you will then have to pay half of the property's 'marriage value' on top of the usual cost of the lease extension to your landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Flat owners in North Cheam will mostly qualify for a lease extension; however a solicitor should be able confirm if you qualify. In some situations you may not be entitled. There are prescribed timetables and procedures to comply with once the process is initiated so it’s wise to be guided by a lawyer during the process.
It is generally accepted that a residential leasehold with more than one hundred years unexpired lease term is worth approximately the same as a freehold. Where an further ninety years added to any lease with more than 30 years unexpired, the residence will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Bank of Scotland | |
| Godiva Mortgages | |
| Halifax | |
| Royal Bank of Scotland |
Retaining our service will provide you increased control over the value of your North Cheam leasehold, as your property will be more valuable and saleable in relation to the lease length should you wish to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Joshua was the the leasehold owner of a studio apartment in North Cheam being marketed with a lease of a little over fifty eight years left. Joshua on an informal basis contacted his landlord being a well known London-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent to start with set at £200 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Joshua to exercise his statutory right. Joshua obtained expert advice and was able to make a more informed decision and deal with the matter and sell the property.
In 2010 we were phoned by Mrs R Davies who, having owned a ground floor flat in North Cheam in March 2007. The question was if we could approximate the premium would be to extend the lease by an additional years. Comparable flats in North Cheam with 100 year plus lease were in the region of £200,000. The mid-range amount of ground rent was £50 invoiced quarterly. The lease concluded in 2103. Considering the 77 years remaining we calculated the compensation to the freeholder to extend the lease to be within £8,600 and £9,800 plus professional charges.
Mr and Mrs. A Peterson was assigned a lease of a purpose-built flat in North Cheam in May 2000. The question was if we could shed any light on how much (approximately) price would likely be to prolong the lease by 90 years. Comparative properties in North Cheam with 100 year plus lease were valued around £260,200. The mid-range ground rent payable was £65 invoiced every twelve months. The lease ended in 2092. Taking into account 66 years left we calculated the premium to the freeholder to extend the lease to be within £14,300 and £16,400 exclusive of fees.