Gloucester leases on residential properties are gradually losing value. if your lease has in the region of 90 years left, you should start considering the need for a lease extension. Eighty years is a significant number: when the remaining term of a lease drops below this level then you start paying an additional element called marriage value. Flat owners in Gloucester will mostly be legally entitled to a lease extension; however it’s a good idea to check with a conveyancing solicitor to check your eligibility. In certain situations you may not qualify. There are prescribed timetables and formalities to comply with once the process is initiated so it’s prudent to be guided by a conveyancer during the process.
Leasehold residencies in Gloucester with over one hundred years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Regardless of whether you are a tenant or a landlord in Gloucester,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 Gloucester valuers.
In recent months Freddie, came perilously close to the eighty-year mark with the lease on his purpose- built flat in Gloucester. Having bought his flat two decades ago, the length of the lease was of minimal interest. Fortunately, it dawned on him that he needed to take action soon on a lease extension. Freddie was able to extend his lease just under the wire in March. Freddie and the landlord ultimately settled on sum of £5,000 . If he had missed the deadline, the figure would have become more costly by at least £1,150.
In 2010 we were phoned by Ms Molly François who, having moved into a one bedroom flat in Gloucester in November 2004. The question was if we could estimate the compensation to the landlord would be for a ninety year lease extension. Similar properties in Gloucester with a long lease were worth £181,600. The average ground rent payable was £55 billed monthly. The lease came to a finish on 1 October 2077. Taking into account 52 years unexpired we calculated the compensation to the freeholder to extend the lease to be between £30,400 and £35,200 not including expenses.
Mr and Mrs. M Cox bought a one bedroom flat in Gloucester in May 2000. We are asked if we could approximate the price could be to extend the lease by ninety years. Similar premises in Gloucester with a long lease were worth £290,000. The mid-range ground rent payable was £45 billed annually. The lease finished in 2097. Considering the 72 years as a residual term we calculated the compensation to the freeholder for the lease extension to be within £11,400 and £13,200 plus legals.