Cinderford leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease gets more expensive. The majority of owners of residential leasehold property in Cinderford enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Cinderford you should check if your lease has between seventy and 90 years remaining. There are compelling reasons why a Cinderford flat owner with a lease having around 80 years remaining should take action to ensure that a lease extension is effected without delay
Leasehold properties in Cinderford with in excess of 100 years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Chelsea 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| 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. |
Lease extensions in Cinderford can be a difficult process. We recommend you obtain guidance from a conveyancing solicitor and valuer with experience in lease extensions.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge procuring Cinderford lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Milo owned a studio flat in Cinderford being sold with a lease of a little over 72 years unexpired. Milo on an informal basis contacted his landlord a well known Manchester-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years subject to an increased rent to £200 annually. No ground rent would be payable on a lease extension were Milo to invoke his statutory right. Milo procured expert advice and secured satisfactory resolution informally and sell the property.
Dr I Roberts was assigned a lease of a purpose-built apartment in Cinderford in April 2012. We are asked if we could estimate the premium could be for a ninety year lease extension. Identical premises in Cinderford with a long lease were worth £256,600. The mid-range ground rent payable was £60 billed quarterly. The lease terminated on 28 March 2077. Given that there were 52 years outstanding we estimated the premium to the freeholder for the lease extension to be within £41,800 and £48,400 exclusive of professional charges.
In 2013 we were contacted by Mr and Mrs. U Watson who, having acquired a garden apartment in Cinderford in August 2012. The question was if we could estimate the price would likely be for a 90 year lease extension. Similar residencies in Cinderford with a long lease were in the region of £218,000. The mid-range amount of ground rent was £45 billed quarterly. The lease concluded on 6 April 2088. Considering the 63 years as a residual term we approximated the premium to the landlord to extend the lease to be between £17,100 and £19,800 not including costs.