It’s a harsh truth that a Cheetham Hill residential lease is a deteriorating asset. As the lease term reduces so does the value of the property. The extent of this is taken for granted in the early years due to the reduction being disguised by increases in the Cheetham Hill property market.Where your lease has approximately ninety years left, you should start considering a lease extension. If the number of years remaining falls under eighty years, you will end up paying half of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. The marriage fee is the amount of extra value that a lease extension will add the property The majority of flat owners in Cheetham Hill will be able to extend under the legislation; however a lawyer will be able to confirm whether you are eligibility. In some situations you may not be entitled. There are also strict timeframes and procedures to follow once the process has commenced and you will need to be guided by your conveyancer throughout the formalities.
It is conventional wisdom that a property with over one hundred 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 many years in the future.
| Lender | Requirement |
|---|---|
| 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. |
| Leeds Building Society | 85 years remaining from the start 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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. |
Regardless of whether you are a tenant or a freeholder in Cheetham Hill,the lease extension experts 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.
14 months ago Harry, started to get near to the 80-year mark with the lease on his purpose- built flat in Cheetham Hill. Having bought his property 19 years ago, the unexpired term was of little significance. by good luck, it dawned on him that he would imminently be paying an inflated amount for a lease extension. Harry was able to extend his lease at the eleventh hour last August. Harry and the landlord who owned the flat above eventually settled on the final figure of £5,500 . If the lease had slipped lower than eighty years, the amount would have gone up by a minimum £1,150.
In 2012 we were approached by Ms Holly Torres who, having bought a one bedroom flat in Cheetham Hill in January 2001. We are asked if we could approximate the compensation to the landlord would be for a ninety year extension to my lease. Similar homes in Cheetham Hill with 100 year plus lease were valued around £264,000. The average ground rent payable was £60 invoiced quarterly. The lease terminated on 21 November 2078. Having 53 years outstanding we calculated the compensation to the landlord to extend the lease to be within £37,100 and £42,800 exclusive of fees.
Last Spring we were called by Dr M Stewart , who bought a one bedroom apartment in Cheetham Hill in August 2001. We are asked if we could estimate the price could be to extend the lease by a further 90 years. Identical flats in Cheetham Hill with an extended lease were worth £225,400. The mid-range ground rent payable was £45 collected every twelve months. The lease elapsed on 27 September 2089. Given that there were 64 years as a residual term we calculated the premium to the freeholder to extend the lease to be within £16,200 and £18,600 exclusive of fees.