Quedgeley leases on residential properties are gradually losing value. if your lease has in the region of ninety years remaining, you should start thinking about a lease extension. If lease term is under 80 years, you will then be required to pay half of the property's 'marriage value' in addition to the standard cost of the lease extension to your landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Leasehold owners in Quedgeley will mostly be legally entitled to a lease extension; however a solicitor will check if you qualify. In certain circumstances you may not be entitled. There are prescribed deadlines and formalities to comply with once the process is initiated so it’s best to be guided by a conveyancing solicitor during the process.
Leasehold premises in Quedgeley with in excess of one hundred years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Lloyds TSB Scotland | Minimum 70 years from the date 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Engaging our service will provide you enhanced control over the value of your Quedgeley leasehold, as your property will be more valuable and marketable in respect of lease length should you decide to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Subsequent to protracted correspondence with the landlord of her basement apartment in Quedgeley, Isabella commenced the lease extension process just as her lease was coming close to the all-important 80-year deadline. The transaction was finalised in June 2006. The freeholder’s fees were kept to an absolute minimum.
Last Spring we were phoned by Mrs Grace Cooper , who bought a one bedroom apartment in Quedgeley in March 2007. We are asked if we could estimate the premium would be for a ninety year extension to my lease. Similar properties in Quedgeley with 100 year plus lease were valued around £260,000. The average amount of ground rent was £50 billed every twelve months. The lease expired on 28 April 2098. Taking into account 73 years remaining we estimated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 not including legals.
In 2009 we were contacted by Mr S Clark who, having took over the lease of a first floor apartment in Quedgeley in August 2009. We are asked if we could estimate the price would be for a 90 year lease extension. Comparative properties in Quedgeley with an extended lease were valued about £264,000. The mid-range amount of ground rent was £60 invoiced per annum. The lease lapsed in 2078. Considering the 53 years as a residual term we approximated the compensation to the landlord for the lease extension to be within £37,100 and £42,800 not including legals.