As the length of the unexpired term of a Cirencester domestic lease decreases so does its value and therefore the value of your property. Where the lease has, in excess of 125 years to run then this decrease may be fractional that being said there will become a stage when a lease has less than eighty years unexpired as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the primary logic behind why you should extend the lease sooner rather than later. The majority of flat owners in Cirencester will qualify for this right; nevertheless a conveyancer can advise whether you are eligible to extend your lease. In certain situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
Leasehold premises in Cirencester with more than 100 years left on the lease are sometimes 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 buying the reversionary interest unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| 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. |
| 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. |
Lease extensions in Cirencester can be a difficult process. We recommend you procure guidance from a conveyancing solicitor and valuer 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 a wealth of experience 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.
Off the back of unsuccessful correspondence with the freeholder of her basement flat in Cirencester, Charlotte commenced the lease extension process as the eighty year mark was rapidly approaching. The lease extension was concluded in August 2015. The freeholder’s charges were kept to an absolute minimum.
Ms Rhiannon Leroy acquired a basement apartment in Cirencester in June 2003. We are asked if we could estimate the premium would likely be for a ninety year lease extension. Identical homes in Cirencester with 100 year plus lease were worth £280,000. The average ground rent payable was £55 collected quarterly. The lease lapsed on 25 January 2104. Having 78 years as a residual term we approximated the premium to the freeholder to extend the lease to be within £13,300 and £15,400 not including legals.
In 2014 we were called by Mr and Mrs. V Allen who, having bought a one bedroom apartment in Cirencester in November 1998. The question was if we could shed any light on how much (approximately) price would likely be to prolong the lease by 90 years. Comparable homes in Cirencester with an extended lease were valued about £186,000. The mid-range ground rent payable was £65 invoiced monthly. The lease terminated on 3 August 2084. Considering the 58 years as a residual term we estimated the premium to the landlord to extend the lease to be within £23,800 and £27,400 plus legals.