Unfortunately that a Cirencester residential lease is a wasting asset. As the lease term diminishes so does the value of the property. The extent of this is taken for granted in the early years due to the loss of value being disguised by increases in the Cirencester property prices.Where your lease has approximately ninety years left, you should start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease falls lower than eighty years - otherwise a higher premium will be payable. Most leasehold owners in Cirencester will be able to extend under the legislation; however a conveyancing solicitor will be able to clarify if you qualify for an extension. In some situations you may not qualify. There are also strict timetables and procedures to be adhered to once the process has commenced and you will need to be guided by your lawyer for the duration of the formalities.
Leasehold residencies in Cirencester with more than 100 years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date 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 |
Regardless of whether you are a tenant or a landlord in Cirencester,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Cirencester valuers.
Ryan was the the leasehold proprietor of a conversion flat in Cirencester being sold with a lease of a little over 59 years left. Ryan on an informal basis contacted his freeholder being a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to give an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £50 yearly. No ground rent would be payable on a lease extension were Ryan to exercise his statutory right. Ryan obtained expert legal guidance and secured an acceptable deal informally and readily saleable.
Dr Stanley Martínez acquired a garden apartment in Cirencester in October 2005. We are asked if we could shed any light on how much (roughly) premium would be for a ninety year extension to my lease. Similar properties in Cirencester with 100 year plus lease were valued about £275,000. The average ground rent payable was £55 invoiced yearly. The lease came to a finish on 19 July 2102. Considering the 77 years as a residual term we approximated the compensation to the freeholder for the lease extension to be between £13,300 and £15,400 plus professional charges.
Dr P Sánchez purchased a ground floor flat in Cirencester in October 2012. The question was if we could approximate the compensation to the landlord would likely be for a ninety year lease extension. Identical homes in Cirencester with an extended lease were valued about £183,600. The mid-range amount of ground rent was £65 invoiced every twelve months. The lease elapsed in 2082. Taking into account 57 years left we approximated the compensation to the freeholder to extend the lease to be within £28,500 and £33,000 not including fees.