Why you should commence your Cirencester lease extension
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Main reasons to start your Cirencester lease extension today:
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<h4> A <a href="http://www.lendermonitor.com/conveyancing/loc/cirencester">Cirencester</a> lease depreciates with the years remaining on the lease.
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<p> The market value of Cirencester leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of extending the lease can increase substantially once the unexpired lease term is below than eighty years
<h4>An extended lease has roughly the same value as a freehold</h4>
<p> It is generally considered that a property with over 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an further ninety years added to any lease with more than 30 years left, the property will be equivalent in value to a freehold for decades to come.
<h4>Banks and Building Societies may decide not to finance a property on a short lease</h4> Lending institutions are less likely to issue a mortgage on a domestic property in Cirencester with a short lease. Some lenders simply refuse a mortgage on leases with below 75 years left.
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<tr><th>Lender</th>
<th> Requirement
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<td>Coventry Building Society</td>
<td> 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.
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<td>National Westminster Bank</td>
<td> Mortgage term plus 30 years.<br /><br />For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage.
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<td>Skipton Building Society</td>
<td> 85 years from the date of completion of the mortgage<br /><br />For Buy to Let cases:<br />- lettings must not breach any of the lessee’s covenants; and<br />- consent of the lessor to lettings must be obtained if necessary
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<td>TSB</td>
<td> Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption.
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<td>Virgin</td>
<td> 85 years at the time of completion. If it's less, we require it to be extended on or before completion.
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<h4> Get in touch with one of our Cirencester lease extension solicitors or enfranchisement solicitors
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Lease extensions in Cirencester can be a difficult process. We recommend you secure guidance from a lawyer and surveyor with experience in lease extensions.
<p>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.
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Cirencester Lease Extension Case Summaries:
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<h5> Jude, Cirencester, Gloucestershire</h5>
<p> Two years ago Jude, came critically close to the 80-year threshold with the lease on his one bedroom flat in Cirencester. Having bought his property twenty years previously, the lease term was of little importance. Thankfully, he became aware that he would soon be paying an inflated amount for a lease extension. Jude arranged for a lease extension at the eleventh hour last June. Jude and the landlord eventually agreed on sum of £6,000 . If the lease had slid below eighty years, the sum would have increased by a minimum £950.
<h5>Cirencester case:</h5>
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In 2010 we were contacted by Dr F Adams who, having owned a first floor flat in Cirencester in April 2010. We are asked if we could approximate the price would be to extend the lease by 90 years. Similar premises in Cirencester with an extended lease were in the region of £176,200. The mid-range amount of ground rent was £65 billed every twelve months. The lease concluded in 2082. Considering the 56 years left we estimated the premium to the landlord for the lease extension to be between £29,500 and £34,000 not including expenses.
<h5>Cirencester case:</h5>
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Last month we were approach by Mr and Mrs. J Rivera , who
purchased a first floor flat in Cirencester in October 1997. We are asked if we could approximate the premium could be to prolong the lease by ninety years. Comparable premises in Cirencester with a long lease were valued around £242,600. The mid-range amount of ground rent was £45 collected every twelve months. The lease expired on 25 January 2093. Given that there were 67 years unexpired we approximated the compensation to the landlord to extend the lease to be within £11,400 and £13,200 not including fees.
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