Chances are that if you own a flat in Cheetham Hill you actually own a long leasehold interest over your property
Leasehold properties in Cheetham Hill with over 100 years unexpired 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 premises. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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 |
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 experience and the close ties they enjoy with Cheetham Hill valuers.
Luke was the the leasehold owner of a conversion flat in Cheetham Hill on the market with a lease of a few days over 59 years remaining. Luke informally approached his freeholder a well known Manchester-based freehold company for a lease extension. The freeholder was keen to give an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £200 yearly. Ordinarily, ground rent would not be due on a lease extension were Luke to invoke his statutory right. Luke procured expert legal guidance and was able to make an informed decision and deal with the matter and sell the property.
Last Christmas we were approach by Mr and Mrs. J Fournier , who bought a ground floor apartment in Cheetham Hill in October 2009. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord could be to prolong the lease by a further 90 years. Similar residencies in Cheetham Hill with a long lease were valued around £227,800. The average amount of ground rent was £45 collected yearly. The lease elapsed in 2090. Considering the 65 years left we calculated the compensation to the landlord to extend the lease to be within £13,300 and £15,400 not including costs.
Mr and Mrs. N Bennett moved into a first floor flat in Cheetham Hill in February 1999. The question was if we could estimate the price would likely be to extend the lease by an additional years. Similar premises in Cheetham Hill with an extended lease were worth £275,000. The average ground rent payable was £55 invoiced annually. The lease concluded on 1 May 2101. Having 76 years unexpired we approximated the premium to the landlord to extend the lease to be between £9,500 and £11,000 exclusive of legals.