Owning a flat usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. your lease will ordinarily be granted for a set period of time , ordinarily 99 or 125 years, although we have witnessed longer and shorter terms in Cirencester. Clearly, the length of lease remaining reduces over time. This may slip by relatively unnoticed when the property needs to be sold or refinanced. The shorter the lease the less it is worth and the more it will cost to procure a lease extension. Eligible long lease owners in Cirencester have the right to extend the lease for an additional 90 years in accordance with Leasehold Reform legislation. You should give careful consideration before delaying your Cirencester lease extension. Putting off the cost now only increases the price you will ultimately have to pay for a lease extension
Leasehold properties in Cirencester with more than 100 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 property. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate charges warrant it.
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancing solicitors that we work with procure Cirencester lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
Harrison was the the leasehold proprietor of a 2 bedroom apartment in Cirencester being marketed with a lease of a few days over 72 years unexpired. Harrison informally contacted his freeholder being a well known local-based freehold company for a lease extension. The freeholder was keen to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £200 per annum. No ground rent would be payable on a lease extension were Harrison to invoke his statutory right. Harrison obtained expert legal guidance and was able to make a more informed judgement and deal with the matter and ending up with a market value flat.
In 2012 we were phoned by Mr and Mrs. Y Vincent who, having took over the lease of a purpose-built apartment in Cirencester in February 1998. We are asked if we could estimate the premium could be for a ninety year lease extension. Identical homes in Cirencester with an extended lease were worth £265,000. The mid-range ground rent payable was £50 invoiced quarterly. The lease ran out in 2099. Taking into account 73 years left we approximated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 not including expenses.
In 2014 we were contacted by Mr and Mrs. N Gray who, having moved into a purpose-built apartment in Cirencester in June 2004. We are asked if we could approximate the compensation to the landlord could be to prolong the lease by a further 90 years. Similar properties in Cirencester with a long lease were in the region of £264,000. The mid-range ground rent payable was £60 collected per annum. The lease elapsed on 2 March 2079. Considering the 53 years remaining we approximated the compensation to the landlord for the lease extension to be between £37,100 and £42,800 not including costs.