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
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.
| Lender | Requirement |
|---|---|
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a landlord in Cirencester,the lease extension experts 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.
In 2014 Hugo, came perilously near to the 80-year mark with the lease on his first floor flat in Cirencester. In buying his flat twenty years previously, the length of the lease was of no significance. Fortunately, he became aware that he would soon be paying an escalated premium for Extending the lease. Hugo arranged for a lease extension just under the wire in September. Hugo and the freeholder via the managing agents eventually settled on the final figure of £6,000 . If he had missed the deadline, the sum would have become more costly by at least £850.
Dr C Rodríguez purchased a studio apartment in Cirencester in March 2007. We are asked if we could approximate the price would be for a ninety year lease extension. Identical flats in Cirencester with 100 year plus lease were in the region of £176,200. The average ground rent payable was £65 billed yearly. The lease lapsed in 2082. Taking into account 56 years unexpired we calculated the premium to the landlord for the lease extension to be between £29,500 and £34,000 not including legals.
Mrs Molly Clark took over the lease of a garden apartment in Cirencester in March 1997. We are asked if we could shed any light on how much (roughly) compensation to the landlord would be for a 90 year extension to my lease. Similar residencies in Cirencester with an extended lease were valued around £242,600. The average ground rent payable was £45 collected yearly. The lease ran out on 16 August 2093. Taking into account 67 years outstanding we approximated the compensation to the freeholder for the lease extension to be within £11,400 and £13,200 plus professional charges.