North Cheam Lease Extension - Free Consultation

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Before you progress with your lease extension in North Cheam
Get a quote from one of our lease extension experts with over 20 years experience.

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Why you should commence your North Cheam lease extension

Why you should commence your North Cheam lease extension today:

A North Cheam leasehold property depreciates with the years remaining on the lease.

On the balance of probabilities if you own a flat in North Cheam you actually own a long leasehold interest over your property

North Cheam property with a lease extension has roughly the same value as a freehold

It is generally considered that a residential leasehold with over 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be worth the same as a freehold for decades to come.

Lending institutions may decide not to lend on a short lease

The definition of a short lease varies by mortgage company, yet mortgage lenders start to become nervous at around 75 years. This will cause difficulties when you wish to dispose of or refinance your property as it will be practically unmortgageable. You might not have an imminent intention to sell but when you do your purchaser must hold off for two years before they can initiate the legal procedures for a lease extension.

Lender Requirement
Birmingham Midshires Minimum 70 years from the date of the mortgage.
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.
Leeds Building Society 85 years remaining from the start 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

Why use us for your lease extension in North Cheam?

Irrespective of whether you are a tenant or a landlord in North Cheam,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with North Cheam valuers.

North Cheam Lease Extension Case Studies:

Amber, North Cheam, Surrey,

Trailing lengthy discussions with the freeholder of her garden apartment in North Cheam, Amber initiated the lease extension process just as the lease was coming close to the critical 80-year mark. The transaction completed in March 2012. The freeholder’s costs were negotiated to approximately six hundred GBP.

North Cheam case:

In 2013 we were contacted by Mr and Mrs. N Michel who, having purchased a garden flat in North Cheam in April 2011. The question was if we could estimate the price would be to extend the lease by a further 90 years. Similar properties in North Cheam with an extended lease were in the region of £205,000. The mid-range ground rent payable was £50 invoiced per annum. The lease elapsed on 17 April 2105. Taking into account 79 years as a residual term we estimated the compensation to the landlord for the lease extension to be within £8,600 and £9,800 exclusive of expenses.

North Cheam case:

In 2013 we were phoned by Mr and Mrs. P Bernard who, having purchased a one bedroom flat in North Cheam in September 2011. The question was if we could estimate the compensation to the landlord would be to extend the lease by a further 90 years. Comparable flats in North Cheam with a long lease were valued about £275,000. The average amount of ground rent was £65 billed monthly. The lease came to a finish on 14 February 2094. Taking into account 68 years outstanding we calculated the premium to the freeholder for the lease extension to be within £12,400 and £14,200 exclusive of legals.