Chances are that if you own a flat in Cinderford you actually own a long leasehold interest over your property
Leasehold properties in Cinderford with over 100 years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Retaining our service gives you increased control over the value of your Cinderford leasehold, as your property will be more valuable and saleable in respect of lease length should you want to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
In the wake of 6 months of unsuccessful negotiations with the freeholder of her studio flat in Cinderford, Elizabeth commenced the lease extension process just as the lease was coming close to the all-important eighty-year threshold. The transaction was concluded in November 2015. The landlord’s costs were kept to an absolute minimum.
Last October we were phoned by Mr and Mrs. D Roberts , who completed a ground floor flat in Cinderford in November 2012. The question was if we could approximate the compensation to the landlord could be to extend the lease by an additional years. Comparable homes in Cinderford with 100 year plus lease were valued around £200,800. The mid-range ground rent payable was £65 billed quarterly. The lease concluded in 2086. Considering the 60 years left we calculated the compensation to the freeholder for the lease extension to be between £20,900 and £24,200 exclusive of expenses.
Last Winter we were contacted by Mr D Baker , who bought a one bedroom apartment in Cinderford in February 2008. The dilemma was if we could estimate the compensation to the landlord would likely be to extend the lease by ninety years. Identical properties in Cinderford with a long lease were worth £260,000. The mid-range amount of ground rent was £50 billed annually. The lease finished in 2097. Taking into account 71 years as a residual term we estimated the compensation to the freeholder for the lease extension to be between £9,500 and £11,000 not including professional charges.