The basic rule is, all other factors being equal, the shorter the lease the more expensive the premium. Qualifying leaseholders in Cinderford have the right to extend the lease for a further ninety years in accordance with Leasehold Reform legislation. Do think carefully before delaying your Cinderford lease extension. Postponing the costs now simply increases the amount you will eventually have to pay to extend the lease.
Leasehold premises in Cinderford with more than one hundred years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Regardless of whether you are a tenant or a landlord in Cinderford,the lease extension solicitors 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.
Following lengthy negotiations with the landlord of her first floor apartment in Cinderford, Chloe started the lease extension process just as the lease was nearing the crucial eighty-year threshold. The lease extension completed in June 2014. The freeholder’s costs were kept to an absolute minimum.
In 2013 we were phoned by Mr Eli Gray who, having owned a garden flat in Cinderford in July 1998. The question was if we could estimate the price would likely be for a 90 year lease extension. Similar residencies in Cinderford with 100 year plus lease were worth £260,000. The mid-range ground rent payable was £50 billed quarterly. The lease came to a finish in 2097. Given that there were 72 years as a residual term we calculated the premium to the landlord to extend the lease to be within £9,500 and £11,000 exclusive of legals.
Dr U Dupont acquired a garden apartment in Cinderford in July 2002. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be for a ninety year lease extension. Comparable residencies in Cinderford with a long lease were in the region of £256,600. The mid-range ground rent payable was £60 collected every twelve months. The lease ended on 19 February 2077. Having 52 years remaining we calculated the premium to the freeholder for the lease extension to be between £41,800 and £48,400 plus legals.