When it comes to domestic leasehold premises in Cinderford, you are actually purchasing an entitlement to live in a property for a prescribed time frame. Modern flat leases are usually granted for 99 years or 125. Many leasehold owners become complacent as this seems like a lengthy period of time, you should consider a lease extension sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease increases markedly especially when there are fewer than 80 years left. Leasehold owners in Cinderford with a lease drawing near to 81 years remaining should seriously consider extending it without delay. When a lease has under 80 years outstanding, under the current statute the landlord is entitled to calculate and levy a greater amount, based on a technical calculation, known as “marriage value” which is due.
It is generally accepted that a residential leasehold with over 100 years remaining is worth approximately the same as a freehold. Where an additional 90 years added to any lease with more than 35 years left, the premises will be worth the same as a freehold for many years in the future.
| 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
Regardless of whether you are a tenant or a freeholder in Cinderford,the lease extension lawyers 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 Cinderford valuers.
Trailing protracted negotiations with the landlord of her one bedroom flat in Cinderford, Sophie started the lease extension process as the eighty year mark was fast nearing. The transaction was finalised in September 2007. The landlord’s costs were negotiated to about five hundred GBP.
Mrs Kirsty Khan owned a studio flat in Cinderford in November 1996. We are asked if we could estimate the price would be to prolong the lease by a further 90 years. Comparable homes in Cinderford with an extended lease were valued about £203,200. The mid-range amount of ground rent was £65 billed every twelve months. The lease came to a finish in 2086. Given that there were 61 years outstanding we calculated the premium to the freeholder for the lease extension to be between £19,000 and £22,000 not including fees.
Mr and Mrs. N Evans purchased a studio flat in Cinderford in July 2011. The dilemma was if we could approximate the compensation to the landlord would be to extend the lease by ninety years. Comparative residencies in Cinderford with a long lease were worth £260,000. The average ground rent payable was £50 invoiced monthly. The lease ran out on 10 April 2097. Given that there were 72 years outstanding we estimated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 exclusive of professional charges.