As the the remaining lease term of a Cinderford domestic lease diminished so does its value and therefore the value of your property. If the residual term has, beyond one hundred years remaining then this decrease may be fractional however there will become a stage when a lease has less than 80 years left as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the main rational as to why you should consider extending without delay. The majority of flat owners in Cinderford will qualify for this right; nevertheless a lawyer can confirm if you are eligible for a lease extension. In limited situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
It is generally accepted that a residential leasehold with more than one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an further 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 |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Coventry Building Society | 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. |
| 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. |
| 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. |
Lease extensions in Cinderford can be a difficult process. We recommend you procure professional help from a conveyancer and surveyor well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge dealing with Cinderford lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Subsequent to lengthy negotiations with the freeholder of her leasehold flat in Cinderford, Natalie initiated the lease extension process as the 80 year threshold was swiftly approaching. The lease extension was finalised in February 2015. The landlord’s costs were restricted to approximately 450 GBP.
Last year we were approach by Ms Yasmin Collins , who moved into a first floor flat in Cinderford in November 2010. The question was if we could shed any light on how much (approximately) price would be for a 90 year lease extension. Similar premises in Cinderford with a long lease were worth £176,200. The mid-range amount of ground rent was £65 invoiced monthly. The lease ran out on 17 February 2081. Given that there were 56 years as a residual term we estimated the compensation to the landlord to extend the lease to be between £29,500 and £34,000 plus legals.
Mr and Mrs. G Young owned a purpose-built apartment in Cinderford in May 1999. We are asked if we could approximate the compensation to the landlord would be for a ninety year extension to my lease. Comparable flats in Cinderford with a long lease were in the region of £237,600. The average amount of ground rent was £45 collected quarterly. The lease ran out on 5 November 2092. Given that there were 67 years as a residual term we approximated the compensation to the landlord to extend the lease to be within £11,400 and £13,200 plus expenses.