For anyone whose Cinderford flat is held on a long lease, our message is clear – if nothing is done, your property will ultimately revert to your landlord, leaving you empty-handed. The fewer the years remaining the lower the value of the property and the more it will cost to extend the lease.
It is conventional wisdom that a residential leasehold with over 100 years remaining is worth approximately the equivalent as a freehold. Where an further ninety years added to any lease with more than 45 years unexpired, the residence will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| 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. |
| Leeds Building Society | 85 years remaining from the start 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. |
Regardless of whether you are a tenant or a landlord in Cinderford,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 experience and the close ties they enjoy with Cinderford valuers.
Daniel owned a conversion apartment in Cinderford being sold with a lease of a few days over fifty eight years remaining. Daniel informally spoke with his landlord being a well known local-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to give an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £125 per annum. No ground rent would be payable on a lease extension were Daniel to exercise his statutory right. Daniel obtained expert advice and was able to make a more informed decision and deal with the matter and sell the property.
Last Winter we were contacted by Dr C Lefebvre , who acquired a basement flat in Cinderford in July 2002. The dilemma was if we could shed any light on how much (approximately) premium would likely be for a 90 year lease extension. Comparative homes in Cinderford with a long lease were valued around £237,600. The mid-range amount of ground rent was £45 collected every twelve months. The lease lapsed in 2093. Considering the 67 years remaining we approximated the compensation to the freeholder for the lease extension to be between £11,400 and £13,200 plus legals.
Mr and Mrs. A François took over the lease of a garden flat in Cinderford in June 2008. The question was if we could shed any light on how much (roughly) premium would likely be to extend the lease by 90 years. Comparative premises in Cinderford with an extended lease were valued about £280,000. The average amount of ground rent was £55 invoiced quarterly. The lease lapsed in 2104. Having 78 years left we approximated the compensation to the freeholder to extend the lease to be within £13,300 and £15,400 not including fees.