For anyone whose Cirencester flat is held on a long lease, the message is clear – if you do nothing, your property will ultimately revert to your landlord, leaving you empty-handed. The fewer the years remaining the less it is worth and the more it will cost to extend the lease.
Leasehold residencies in Cirencester with in excess of one hundred years left on the lease are sometimes referred to as ‘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 buying the reversionary interest unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Godiva Mortgages | |
| Nationwide Building Society | |
| Santander | |
| Skipton Building Society | |
| Royal Bank of Scotland |
Using our service will provide you better control over the value of your Cirencester leasehold, as your property will be more valuable and marketable in respect of lease length should you want to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Lucas owned a studio flat in Cirencester being sold with a lease of just over 61 years left. Lucas informally contacted his freeholder a well known Bristol-based freehold company for a lease extension. The landlord was keen to grant an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £200 annually. Ordinarily, ground rent would not be payable on a lease extension were Lucas to invoke his statutory right. Lucas obtained expert legal guidance and was able to make a more informed decision and handle with the matter and readily saleable.
In 2011 we were phoned by Dr Ethan Johnson who, having acquired a purpose-built apartment in Cirencester in April 2008. The dilemma was if we could estimate the compensation to the landlord would be to prolong the lease by an additional years. Similar properties in Cirencester with an extended lease were valued about £186,000. The mid-range amount of ground rent was £65 billed annually. The lease elapsed on 9 August 2084. Taking into account 58 years outstanding we approximated the premium to the landlord for the lease extension to be within £22,800 and £26,400 plus fees.
Last Christmas we were called by Dr L Alexander , who completed a newly refurbished apartment in Cirencester in April 2008. We are asked if we could approximate the price could be to prolong the lease by ninety years. Comparative residencies in Cirencester with 100 year plus lease were worth £250,000. The average ground rent payable was £50 invoiced every twelve months. The lease expiry date was in 2095. Given that there were 69 years unexpired we approximated the premium to the landlord to extend the lease to be between £9,500 and £11,000 exclusive of professional charges.