Cinderford leases on domestic deteriorating in value. Where your lease has in the region of ninety years remaining, you should start considering the need for a lease extension. If lease term dips under eighty 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. Marriage value is the amount of additional value that a lease extension will add to the property. Leasehold owners in Cinderford will mostly be legally entitled to a lease extension; however it’s a good idea to check with a lawyer to check your eligibility. In certain circumstances you may not qualify. There are also strict timetables and procedures to follow once the process is triggered so it’s wise to be guided by a conveyancing solicitor during the process.
Leasehold residencies in Cinderford with over 100 years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and service charges warrant it.
| 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. |
| 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. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Engaging our service will provide you better control over the value of your Cinderford leasehold, as your property will be more valuable and saleable in relation to the lease length should you want to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
James owned a studio apartment in Cinderford being sold with a lease of a little over sixty years remaining. James informally contacted his landlord being a well known local-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent initially set at £150 per annum and doubled every twenty five years thereafter. No ground rent would be due on a lease extension were James to exercise his statutory right. James obtained expert legal guidance and was able to make an informed decision and handle with the matter and sell the property.
Last Autumn we were contacted by Dr U Stewart , who was assigned a lease of a basement flat in Cinderford in May 1996. The question was if we could estimate the compensation to the landlord could be to extend the lease by an additional years. Comparable flats in Cinderford with a long lease were worth £249,200. The mid-range amount of ground rent was £60 invoiced yearly. The lease concluded in 2077. Given that there were 51 years left we estimated the premium to the freeholder for the lease extension to be between £43,700 and £50,600 exclusive of legals.
In 2010 we were phoned by Mr and Mrs. F Scott who, having moved into a first floor apartment in Cinderford in September 2005. We are asked if we could estimate the price would likely be to prolong the lease by an additional years. Identical homes in Cinderford with a long lease were worth £208,200. The average ground rent payable was £65 billed quarterly. The lease expiry date was in 2087. Taking into account 61 years left we calculated the premium to the freeholder to extend the lease to be between £20,000 and £23,000 exclusive of fees.