The re-sale value of a leasehold property in Cinderford is impacted by how long the lease has left to run. If it is near to or less than 80 years you should expect difficulties on re-sale, so it is recommended to arrange for a lease extension prior to purchasing. Ideally one should start the lease extension process when a lease still has 82 years to run so that a lease extension can be concluded well before the eighty year threshold. Current legislation enables Cinderford qualifying lessees to obtain a lease extension of 90 years on top of the remaining length of the lease at a peppercorn rent (that is, rent free). The reason of the valuation is to arrive at an opinion of the premium payable by the lessee to the freeholder for the acquisition of the lease extension.
It is generally considered that a property with more than 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an further ninety years added to any lease with more than 45 years left, the premises will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| 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. |
| 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 |
Lease extensions in Cinderford can be a difficult process. We recommend you secure professional help from a conveyancer and valuer well versed in the legislation and lease extension process.
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.
Jake was the the leasehold proprietor of a 2 bedroom apartment in Cinderford on the market with a lease of fraction over 61 years outstanding. Jake informally spoke with his freeholder being a well known Bristol-based freehold company for a lease extension. The freeholder was prepared to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £100 yearly. Ordinarily, ground rent would not be due on a lease extension were Jake to invoke his statutory right. Jake procured expert legal guidance and was able to make a more informed decision and handle with the matter and readily saleable.
Last Summer we were contacted by Dr A Hill , who acquired a basement flat in Cinderford in May 2007. The question was if we could estimate the price would likely be to extend the lease by ninety years. Similar flats in Cinderford with an extended lease were valued about £168,800. The mid-range amount of ground rent was £60 billed every twelve months. The lease concluded on 28 May 2081. Taking into account 55 years as a residual term we estimated the premium to the freeholder to extend the lease to be between £31,400 and £36,200 exclusive of fees.
Last Summer we were e-mailed by Mrs T Nguyen , who took over the lease of a newly refurbished apartment in Cinderford in February 2010. We are asked if we could estimate the premium would be to extend the lease by ninety years. Similar homes in Cinderford with an extended lease were valued about £235,200. The average ground rent payable was £45 billed monthly. The lease ran out in 2092. Given that there were 66 years left we approximated the premium to the landlord to extend the lease to be between £12,400 and £14,200 plus professional charges.