There is no doubt about it a leasehold flat or house in Cheetham Hill is a wasting asset as a result of the diminishing lease term. If the lease has, beyond 125 years remaining then this decrease may be negligible nevertheless there will become a stage when a lease has less than 80 years unexpired as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the main logic behind why you should extend the lease without delay. Most flat owners in Cheetham Hill will qualify for this right; that being said a conveyancing solicitor can confirm whether you are eligible for a lease extension. In limited situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
It is conventional wisdom that a residential leasehold with in excess of 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional ninety years added to any lease with more than 45 years left, the residence will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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 |
| Yorkshire 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. |
The conveyancing solicitors that we work with procure Cheetham Hill lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
14 months ago Joseph, came very close to the 80-year threshold with the lease on his first floor apartment in Cheetham Hill. Having bought his home 18 years previously, the lease term was of minimal concern. by good luck, he recognised he would imminently be paying an escalated premium for a lease extension. Joseph extended the lease just under the wire last September. Joseph and the landlord in the end agreed on an amount of £5,500 . If the lease had gone lower than eighty years, the figure would have increased by a minimum £900.
In 2014 we were e-mailed by Mr and Mrs. W Reed who, having took over the lease of a basement flat in Cheetham Hill in August 2007. We are asked if we could approximate the price could be to extend the lease by a further 90 years. Comparable flats in Cheetham Hill with an extended lease were worth £166,400. The average amount of ground rent was £60 billed quarterly. The lease termination date was on 20 August 2079. Having 54 years left we estimated the premium to the freeholder to extend the lease to be between £32,300 and £37,400 plus fees.
Last Winter we were called by Dr Finn Miller , who was assigned a lease of a first floor apartment in Cheetham Hill in May 2007. The dilemma was if we could approximate the compensation to the landlord would be to extend the lease by an additional years. Comparable homes in Cheetham Hill with an extended lease were valued about £227,800. The mid-range amount of ground rent was £45 invoiced per annum. The lease expired on 19 November 2090. Given that there were 65 years outstanding we approximated the compensation to the landlord to extend the lease to be between £13,300 and £15,400 exclusive of professional charges.