Cinderford Lease Extension - Free Consultation

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Why you should commence your Cinderford lease extension

Why you should commence your Cinderford lease extension today:

A Cinderford lease depreciates with the years remaining on the lease.

The re-sale value of a leasehold property in Cinderford depends on how long the lease has left to run. If it is near to or fewer than 80 years you should anticipate problems on re-sale, so it is recommended to arrange for a lease extension ahead of buying. It is preferable to commence the lease extension process when a lease still has 82 years remaining so that formalities can be concluded prior to the eighty year mark. Current legislation enables Cinderford qualifying lessees to an additional term of 90 years in addition to the existing term, at a notional rent (no ground rent). The purpose of the valuation is to determine the premium payable by the lessee to the freeholder for the acquisition of the lease extension.

An extended lease has roughly the same value as a freehold

It is conventional wisdom that a residential leasehold with in excess of one hundred years remaining is worth roughly the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be equivalent in value to a freehold for decades to come.

Banks and Building Societies will not loan monies with a short lease

Banks and building societies are really restricting their approach as regards to homes in Cinderford with short leases. For instance you may find that their lending requirements are stricter and that they alter interest rates depending on the unexpired lease term. Some may even refuse to lend completely, so if you needed to sell, your only options would be to find a cash purchaser, or try your luck at auction thus limiting the amount of prospective purchasers.

Lender Requirement
Bank of Scotland Minimum 70 years from the date of the mortgage.
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.
Lloyds TSB Scotland Minimum 70 years from the date of the mortgage.
Virgin 85 years at the time of completion. If it's less, we require it to be extended on or before completion.
Yorkshire Building Society 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.

Get in touch with one of our Cinderford lease extension solicitors or enfranchisement solicitors

Retaining our service will provide you enhanced 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 wish to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.

Cinderford Lease Extension Example Cases:

Sophia, Cinderford, Gloucestershire,

Following unsuccessful negotiations with the landlord of her purpose-built flat in Cinderford, Sophia started the lease extension process just as the lease was approaching the critical 80-year threshold. The legal work completed in April 2011. The freeholder’s charges were kept to an absolute minimum.

Cinderford case:

Last year we were called by Dr Alfie Díaz , who was assigned a lease of a purpose-built flat in Cinderford in March 1995. The dilemma was if we could shed any light on how much (approximately) price would be for a ninety year lease extension. Comparative premises in Cinderford with a long lease were valued about £280,000. The mid-range amount of ground rent was £55 collected yearly. The lease expired in 2101. Given that there were 78 years left we calculated the compensation to the freeholder for the lease extension to be within £13,300 and £15,400 exclusive of professional charges.

Cinderford case:

Last Summer we were phoned by Dr L Davies , who purchased a first floor apartment in Cinderford in May 2005. We are asked if we could shed any light on how much (roughly) compensation to the landlord would be for a ninety year extension to my lease. Comparative premises in Cinderford with an extended lease were worth £186,000. The average amount of ground rent was £65 billed yearly. The lease ended in 2081. Considering the 58 years left we estimated the premium to the freeholder to extend the lease to be within £24,700 and £28,600 not including costs.