The rule of thumb is, all other things holding equal, the shorter the lease the more expensive the premium. Qualifying leaseholders in Cheetham Hill have the right to extend the lease for an additional ninety years under statute. Please give careful consideration before delaying your Cheetham Hill lease extension. Putting off that expense now simply increases the premium you will ultimately have to pay to extend the lease.
Leasehold residencies in Cheetham Hill with more than one hundred years remaining on the lease are sometimes referred to as ‘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 reversionary interest unless savings on ground rent and estate charges warrant 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. |
| Bank of 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 30 years plus the term of the mortgage at the outset 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Engaging our service gives you enhanced control over the value of your Cheetham Hill leasehold, as your property will be more valuable and saleable in terms of lease length should you wish to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Austin owned a high value apartment in Cheetham Hill being sold with a lease of a little over 61 years outstanding. Austin on an informal basis approached his landlord a well known Manchester-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years on the basis of a rise in the rent to £200 annually. No ground rent would be payable on a lease extension were Austin to exercise his statutory right. Austin obtained expert legal guidance and secured satisfactory deal without going to tribunal and readily saleable.
Last Summer we were called by Dr George Turner , who acquired a one bedroom apartment in Cheetham Hill in January 1999. We are asked if we could approximate the compensation to the landlord would be to extend the lease by an additional years. Similar flats in Cheetham Hill with 100 year plus lease were valued around £246,800. The mid-range ground rent payable was £60 billed quarterly. The lease terminated on 14 February 2076. Taking into account 50 years outstanding we calculated the premium to the freeholder for the lease extension to be between £44,700 and £51,600 plus legals.
Ms E Dupont bought a ground floor apartment in Cheetham Hill in February 1999. We are asked if we could shed any light on how much (approximately) price would be for a ninety year lease extension. Comparative homes in Cheetham Hill with 100 year plus lease were in the region of £208,200. The average ground rent payable was £65 invoiced every twelve months. The lease came to a finish in 2087. Having 61 years as a residual term we calculated the compensation to the landlord for the lease extension to be between £20,000 and £23,000 plus professional charges.