When it comes to domestic leasehold premises in Cirencester, you are actually buying a right to reside in a property for a set period of time. These days flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you may think about extending the lease sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease increases markedly particularly once there are less than 80 years remaining. Residents in Cirencester with a lease nearing 81 years left should seriously think of extending it without delay. When the lease term has under 80 years remaining, under the current statute the landlord is entitled to calculate and demand a larger amount, based on a technical calculation, known as “marriage value” which is payable.
It is generally accepted that a property with in excess of 100 years remaining is worth approximately the same as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | 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 be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Cirencester can be a difficult process. We recommend you obtain guidance from a conveyancing solicitor and surveyor 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 a wealth of experience dealing with Cirencester lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Mason was the the leasehold owner of a high value flat in Cirencester on the market with a lease of just over 59 years remaining. Mason on an informal basis spoke with his landlord a well known local-based freehold company and enquired on a premium to extend the lease. The landlord was prepared 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. Ordinarily, ground rent would not be due on a lease extension were Mason to invoke his statutory right. Mason obtained expert legal guidance and secured an acceptable deal informally and sell the property.
Mr and Mrs. V Sánchez took over the lease of a ground floor flat in Cirencester in February 2006. The question was if we could shed any light on how much (approximately) premium would likely be for a ninety year lease extension. Similar flats in Cirencester with 100 year plus lease were valued around £254,200. The mid-range amount of ground rent was £60 invoiced every twelve months. The lease concluded on 17 November 2077. Having 51 years remaining we calculated the premium to the freeholder to extend the lease to be between £43,700 and £50,600 exclusive of fees.
Dr Mollie Martin owned a first floor apartment in Cirencester in May 2003. We are asked if we could approximate the price could be for a ninety year lease extension. Similar residencies in Cirencester with 100 year plus lease were valued about £210,600. The average amount of ground rent was £45 billed annually. The lease termination date was in 2088. Considering the 62 years outstanding we approximated the premium to the landlord to extend the lease to be between £18,100 and £20,800 not including expenses.