Owning a flat usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. your lease will usually be granted for a fixed period of time , usually 99 or 125 years, although we have seen longer and shorter terms in Cirencester. Clearly, the length of lease left reduces as time goes by. This is often ignored and only raises itself as an issue when the flat or house has to be disposed of or re-mortgaged. The fewer the years remaining the lower the value of the property and the more expensive it will be to extend the lease. Qualifying long lease owners in Cirencester have the legal entitlement to extend the lease for an additional ninety years under the 1993 Leasehold Reform Act. Do give careful consideration before putting off your Cirencester lease extension. Putting off that expense now simply increases the price you will ultimately have to pay to extend your lease
It is generally accepted that a property with more than one hundred years remaining is worth roughly the same as a freehold. Where an further 90 years added to any lease with more than 30 years unexpired, the residence will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| 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 |
| Yorkshire Building Society | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
Lease extensions in Cirencester can be a difficult process. We recommend you secure professional help from a conveyancing solicitor and surveyor well versed in the legislation and lease extension process.
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 in-depth market knowledge procuring Cirencester lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last October Alexander, came very close to the 80-year mark with the lease on his leasehold apartment in Cirencester. In buying his flat two decades ago, the unexpired term was of little significance. Fortunately, it dawned on him that he needed to take action soon on Extending the lease. Alexander arranged for a lease extension just in the nick of time last August. Alexander and the landlord who owned the flat above eventually agreed on the final figure of £5,500 . If he failed to meet the deadline, the figure would have escalated by a minimum £925.
Last year we were e-mailed by Dr G Girard , who bought a one bedroom apartment in Cirencester in September 2001. The question was if we could shed any light on how much (approximately) compensation to the landlord would likely be for a 90 year lease extension. Identical flats in Cirencester with an extended lease were valued about £275,000. The average ground rent payable was £55 invoiced quarterly. The lease end date was in 2101. Having 76 years unexpired we approximated the premium to the freeholder to extend the lease to be within £9,500 and £11,000 not including fees.
In 2012 we were e-mailed by Mr K Cox who, having bought a basement apartment in Cirencester in March 2006. The question was if we could approximate the price would likely be for a 90 year extension to my lease. Similar residencies in Cirencester with 100 year plus lease were worth £176,200. The mid-range ground rent payable was £65 invoiced yearly. The lease lapsed in 2081. Taking into account 56 years remaining we calculated the compensation to the freeholder for the lease extension to be within £29,500 and £34,000 not including expenses.