It’s an underpublicised certainty that a Cheetham Hill residential lease is a wasting asset. The lease value reduces in proportion to its lease length. The extent of this is taken for granted in the early years due to the deflation being disguised by increases in the Cheetham Hill property market.Where your lease has approximately ninety years left, you should start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease slips under eighty years - otherwise a higher premium will be due. The majority of leasehold owners in Cheetham Hill will be able to extend under the legislation; however a lawyer should be able to confirm if you qualify for an extension. In some cases you may not qualify. There are also strict deadlines and procedures to follow once the process is initiated and you will need to be guided by your conveyancing solicitor from beginning to end of the formalities.
Leasehold residencies in Cheetham Hill with over 100 years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value 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 service charges justify it.
| Lender | Requirement |
|---|---|
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Regardless of whether you are a tenant or a landlord in Cheetham Hill,the lease extension lawyers that we work with will always be willing 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.
Jonathan was the the leasehold proprietor of a high value apartment in Cheetham Hill being marketed with a lease of a few days over 72 years outstanding. Jonathan on an informal basis approached his freeholder being a well known Manchester-based freehold company for a lease extension. The freeholder was prepared to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent initially set at £200 per annum and doubled every twenty five years thereafter. No ground rent would be due on a lease extension were Jonathan to invoke his statutory right. Jonathan obtained expert advice and secured an acceptable deal informally and readily saleable.
In 2013 we were phoned by Mr and Mrs. C Hill who, having took over the lease of a one bedroom apartment in Cheetham Hill in August 2012. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord would likely be for a 90 year extension to my lease. Similar residencies in Cheetham Hill with a long lease were in the region of £166,400. The average amount of ground rent was £60 invoiced every twelve months. The lease ended in 2080. Taking into account 54 years unexpired we approximated the compensation to the landlord for the lease extension to be between £32,300 and £37,400 not including expenses.
Last Autumn we were e-mailed by Dr Connor Nelson , who completed a basement apartment in Cheetham Hill in November 2004. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be for a 90 year extension to my lease. Identical premises in Cheetham Hill with a long lease were in the region of £227,800. The mid-range amount of ground rent was £45 billed monthly. The lease concluded in 2091. Considering the 65 years remaining we calculated the compensation to the freeholder to extend the lease to be between £13,300 and £15,400 not including legals.