Cirencester leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease becomes more expensive. The majority of owners of residential leasehold property in Cirencester enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Cirencester you must see if your lease has between seventy and ninety years remaining. In particular once the remaining lease term slips under eighty years, the cost of any lease extension increases dramatically as an element of the premium you pay is what is known as a marriage value
Leasehold premises in Cirencester with more than one hundred years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in buying the freehold unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Cirencester can be a difficult process. We recommend you obtain professional help 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 in-depth market knowledge dealing with Cirencester lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Subsequent to protracted discussions with the landlord of her basement flat in Cirencester, Chantelle started the lease extension process just as the lease was nearing the critical 80-year deadline. The transaction was concluded in November 2013. The landlord’s costs were kept to an absolute minimum.
Last January we were approach by Dr Finn Lambert , who completed a first floor apartment in Cirencester in June 1999. The question was if we could estimate the premium could be to extend the lease by 90 years. Comparable properties in Cirencester with a long lease were worth £270,000. The average ground rent payable was £55 invoiced monthly. The lease concluded in 2101. Considering the 75 years as a residual term we approximated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 plus costs.
In 2011 we were phoned by Dr Henry Parker who, having moved into a one bedroom apartment in Cirencester in February 1999. The question was if we could estimate the compensation to the landlord would be for a 90 year extension to my lease. Comparable residencies in Cirencester with a long lease were valued about £168,800. The average amount of ground rent was £60 billed monthly. The lease came to a finish in 2081. Given that there were 55 years left we estimated the compensation to the freeholder to extend the lease to be within £31,400 and £36,200 plus professional charges.