As the length of the unexpired term of a Cinderford residential lease decreases so does its value and therefore the value of your property. Where the lease has, in excess of one hundred years remaining then this decrease may be fractional that being said there will become a point in time when a lease has under than eighty years remaining as part of the premium you will incur is what is termed as a marriage value. This could increase markedly the cost. It is the primary reason why you should extend the lease without delay. Most flat owners in Cinderford will meet the qualifying criteria; that being said a conveyancing solicitor can confirm if you are eligible to extend your lease. In certain situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
Leasehold premises in Cinderford with over one hundred years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and estate 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; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
Lease extensions in Cinderford can be a difficult process. We recommend you get professional help from a conveyancing solicitor and surveyor with experience in this area.
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.
In recent months Ali, started to get close to the 80-year mark with the lease on his leasehold flat in Cinderford. Having bought his flat twenty years previously, the unexpired term was of no importance. Luckily, he noticed he would imminently be paying way over the odds for Extending the lease. Ali was able to extend his lease just in the nick of time in May. Ali and the landlord eventually agreed on the final figure of £6,000 . If the lease had slid below 80 years, the price would have gone up by at least £1,050.
Last Spring we were phoned by Mrs Elizabeth Campbell , who completed a studio apartment in Cinderford in November 2000. We are asked if we could estimate the compensation to the landlord would be to extend the lease by 90 years. Identical residencies in Cinderford with an extended lease were worth £200,800. The average ground rent payable was £65 invoiced per annum. The lease expired in 2085. Taking into account 60 years as a residual term we estimated the premium to the landlord for the lease extension to be within £20,900 and £24,200 plus expenses.
Mr E Turner moved into a one bedroom apartment in Cinderford in September 2004. We are asked if we could estimate the price could be to extend the lease by 90 years. Similar premises in Cinderford with a long lease were worth £255,000. The mid-range ground rent payable was £50 collected yearly. The lease lapsed in 2096. Taking into account 71 years as a residual term we approximated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 exclusive of fees.