It’s an underpublicised truth that a Cinderford residential lease is a deteriorating asset. As the lease term diminishes so does the value of the property. The extent of this is taken for granted in the first few years due to the reduction being disguised by increases in the Cinderford property prices.Where your lease has approximately ninety years left, you should start thinking about a lease extension. If the number of years remaining slips below 80 years, you will then be required to pay half of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. The marriage fee is the amount of extra value that a lease extension will add the property Most leasehold owners in Cinderford will be able to extend under the legislation; however a lawyer will be able to clarify if you are eligibility. In some cases you may not qualify. There are also strict deadlines and procedures to be adhered to once the process is initiated and you will need to be guided by your conveyancer for the duration of the process.
It is conventional wisdom that a residential leasehold with over 100 years unexpired lease term is worth roughly the same as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Barclays plc | |
| Godiva Mortgages | |
| The Mortgage Works | |
| Yorkshire Building Society |
The conveyancers that we work with procure Cinderford lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
Reuben was the the leasehold owner of a 2 bedroom apartment in Cinderford on the market with a lease of fraction over 61 years remaining. Reuben on an informal basis spoke with his freeholder being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent at the outset set at £200 per annum and increase every 25 years thereafter. No ground rent would be due on a lease extension were Reuben to invoke his statutory right. Reuben procured expert advice and secured an acceptable resolution informally and sell the flat.
Mrs Samantha Scott acquired a one bedroom apartment in Cinderford in July 1996. We are asked if we could shed any light on how much (roughly) compensation to the landlord would likely be to prolong the lease by a further 90 years. Comparable residencies in Cinderford with an extended lease were valued about £183,600. The average amount of ground rent was £65 billed yearly. The lease expired on 5 March 2083. Taking into account 57 years left we calculated the premium to the landlord for the lease extension to be between £28,500 and £33,000 plus fees.
Mr W Bonnet took over the lease of a basement flat in Cinderford in February 2009. The question was if we could shed any light on how much (approximately) price would likely be to prolong the lease by ninety years. Comparable premises in Cinderford with 100 year plus lease were in the region of £250,000. The average ground rent payable was £50 invoiced monthly. The lease terminated in 2094. Given that there were 68 years outstanding we approximated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 not including expenses.