Cirencester leases on residential properties are gradually losing value. if your lease has about 90 years remaining, you should start thinking about a lease extension. 80 years is a significant number: when the remaining term of a lease dips below this level then you begin incurring an additional element called marriage value. Leasehold owners in Cirencester will mostly qualify for a lease extension; however it’s a good idea to check with a lawyer to check if you qualify. In some circumstances you may not qualify. There are prescribed timetables and formalities to follow once the process has commenced so it’s wise to be guided by a conveyancing solicitor during the process.
Leasehold properties in Cirencester with in excess of 100 years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little upside in buying the freehold unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Halifax | 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Engaging our service gives you enhanced control over the value of your Cirencester leasehold, as your property will be more valuable and marketable in relation to the lease length should you wish to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Ibrahim was the the leasehold proprietor of a 2 bedroom flat in Cirencester being sold with a lease of a little over 61 years left. Ibrahim informally approached his landlord a well known London-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years on the basis of a new rent initially set at £150 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Ibrahim to invoke his statutory right. Ibrahim obtained expert advice and secured satisfactory resolution without going to tribunal and readily saleable.
Last February we were approach by Dr G Norbert , who took over the lease of a one bedroom apartment in Cirencester in January 1995. We are asked if we could estimate the premium would be for a ninety year extension to my lease. Similar homes in Cirencester with a long lease were valued about £285,000. The average ground rent payable was £55 collected yearly. The lease ended on 17 June 2105. Having 79 years unexpired we calculated the premium to the landlord to extend the lease to be within £13,300 and £15,400 exclusive of costs.
Dr Adam Baker acquired a recently refurbished apartment in Cirencester in October 2005. The dilemma was if we could shed any light on how much (roughly) premium could be for a ninety year extension to my lease. Similar residencies in Cirencester with an extended lease were worth £193,400. The mid-range amount of ground rent was £65 invoiced quarterly. The lease terminated in 2085. Given that there were 59 years unexpired we estimated the premium to the freeholder for the lease extension to be within £21,900 and £25,200 not including professional charges.