Cheetham Hill leases on residential properties are gradually losing value. Where your lease has about 90 years unexpired, you should start thinking about a lease extension. 80 years is a significant number: when the unexpired term of a lease dips below this level then you begin incurring an additional element called marriage value. Leasehold owners in Cheetham Hill will usually be legally entitled to a lease extension; however It would be wise to check with a conveyancer to check your eligibility. In certain situations you may not qualify. There are prescribed timetables and steps to comply with once the process is triggered so it’s sensible to be guided by a conveyancing solicitor during the process.
It is conventional wisdom that a residential leasehold with more than 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 property will be worth the same as a freehold for decades to come.
| 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. |
| 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. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Irrespective of whether you are a tenant or a landlord in Cheetham Hill,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Cheetham Hill valuers.
After unsuccessful negotiations with the freeholder of her garden flat in Cheetham Hill, Sophia initiated the lease extension process as the 80 year mark was rapidly approaching. The legal work was concluded in November 2010. The freeholder’s costs were restricted to under 700 pounds.
Dr R Robinson owned a newly refurbished flat in Cheetham Hill in March 1998. The dilemma was if we could estimate the compensation to the landlord could be to extend the lease by a further 90 years. Similar premises in Cheetham Hill with an extended lease were in the region of £256,600. The mid-range amount of ground rent was £60 invoiced quarterly. The lease ran out in 2078. Taking into account 52 years unexpired we calculated the compensation to the freeholder for the lease extension to be within £39,000 and £45,000 exclusive of professional charges.
Last Spring we were contacted by Mr and Mrs. K Taylor , who moved into a one bedroom apartment in Cheetham Hill in July 2012. The dilemma was if we could estimate the premium could be to prolong the lease by 90 years. Comparative properties in Cheetham Hill with a long lease were in the region of £218,000. The mid-range ground rent payable was £45 collected every twelve months. The lease end date was on 13 April 2089. Considering the 63 years remaining we approximated the compensation to the freeholder to extend the lease to be within £17,100 and £19,800 not including expenses.