Chances are that if you own a flat in North Cheam you actually own a long leasehold interest over your property
It is conventional wisdom that a property with over one hundred years remaining is worth roughly the same as a freehold. Where an further 90 years added to any lease with more than 45 years left, the residence will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Chelsea Building Society | |
| Coventry Building Society | |
| National Westminster Bank | |
| Royal Bank of Scotland | |
| Yorkshire Building Society |
Using our service gives 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 want to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Ibrahim was the the leasehold proprietor of a conversion flat in North Cheam on the market with a lease of fraction over 61 years remaining. Ibrahim informally approached his freeholder being a well known local-based freehold company for a lease extension. The landlord was keen to give an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £200 annually. Ordinarily, ground rent would not be payable on a lease extension were Ibrahim to invoke his statutory right. Ibrahim obtained expert legal guidance and was able to make an informed decision and handle with the matter and ending up with a market value flat.
In 2010 we were called by Ms Melissa Patel who, having bought a basement apartment in North Cheam in July 2000. The question was if we could shed any light on how much (approximately) price would be for a ninety year extension to my lease. Similar residencies in North Cheam with an extended lease were valued about £257,800. The average amount of ground rent was £65 collected quarterly. The lease lapsed in 2091. Taking into account 65 years left we approximated the compensation to the landlord for the lease extension to be between £18,100 and £20,800 plus costs.
In 2009 we were contacted by Mr Jacob Rogers who, having moved into a one bedroom apartment in North Cheam in July 2002. The question was if we could estimate the compensation to the landlord could be to prolong the lease by a further 90 years. Comparable premises in North Cheam with a long lease were valued around £191,400. The mid-range amount of ground rent was £55 billed yearly. The lease termination date was in 2080. Taking into account 54 years unexpired we estimated the compensation to the landlord to extend the lease to be within £34,200 and £39,600 exclusive of legals.