When it comes to residential leasehold property in Cinderford, you are actually purchasing an entitlement to reside in a property for a set period of time. In recent years flat leases are usually granted for 99 years or 125. Even though this may appear like a long period of time, you should consider a lease extension sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease gets disproportionately more expensive notably once there are less than 80 years left. Anyone in Cinderford with a lease approaching 81 years unexpired should seriously consider extending it sooner than later. Once the lease term has less than eighty years remaining, under the current Act the landlord can calculate and levy a larger amount, assessed on a technical computation, strangely termed as “marriage value” which is due.
It is generally considered that a property with in excess of 100 years remaining is worth roughly the same as a freehold. Where an additional 90 years added to all but the shortest lease, the premises will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
Regardless of whether you are a tenant or a freeholder in Cinderford,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Cinderford valuers.
Harvey was the the leasehold proprietor of a 2 bedroom flat in Cinderford on the market with a lease of just over 72 years left. Harvey on an informal basis approached his landlord being a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to give an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £100 annually. Ordinarily, ground rent would not be due on a lease extension were Harvey to invoke his statutory right. Harvey procured expert advice and secured an acceptable deal informally and sell the property.
Last year we were approach by Mr and Mrs. N Thomas , who completed a studio apartment in Cinderford in April 1996. We are asked if we could shed any light on how much (roughly) price would likely be to extend the lease by ninety years. Comparable flats in Cinderford with a long lease were in the region of £250,000. The average amount of ground rent was £50 billed quarterly. The lease ran out in 2096. Considering the 70 years as a residual term we estimated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 not including expenses.
In 2011 we were called by Mr Andrew Lewis who, having owned a first floor flat in Cinderford in January 2007. We are asked if we could shed any light on how much (roughly) compensation to the landlord would be to prolong the lease by a further 90 years. Similar flats in Cinderford with a long lease were worth £290,000. The average ground rent payable was £60 invoiced quarterly. The lease termination date was on 11 April 2106. Taking into account 80 years left we approximated the premium to the freeholder for the lease extension to be between £13,300 and £15,400 plus legals.