When it comes to residential leasehold premises in Cirencester, you are actually purchasing an entitlement to reside in a property for a set period of time. In recent years flat leases typically tend to be for 99 years or 125. Many leasehold owners become complacent as this seems like a lengthy period of time, you should think about extending the lease sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease increases markedly especially once there are less than eighty years remaining. Residents in Cirencester with a lease nearing 81 years left should seriously consider extending it sooner as opposed to later. When the lease term has under eighty years remaining, under the relevant Act the freeholder is entitled to calculate and levy a larger premium, based on a technical computation, known as “marriage value” which is due.
It is conventional wisdom that a residential leasehold with over one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an further 90 years added to any lease with more than 45 years unexpired, the property will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Birmingham Midshires | |
| Godiva Mortgages | |
| Halifax | |
| Virgin |
Irrespective of whether you are a tenant or a landlord in Cirencester,the lease extension experts that we work with will always be happy 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 the wake of eight months of protracted correspondence with the landlord of her studio apartment in Cirencester, Samantha started the lease extension process just as her lease was coming close to the critical 80-year deadline. The transaction was finalised in September 2005. The landlord’s costs were kept to an absolute minimum.
Dr Millie Morgan was assigned a lease of a newly refurbished apartment in Cirencester in March 2010. We are asked if we could estimate the premium would likely be for a 90 year lease extension. Comparative homes in Cirencester with an extended lease were valued around £255,000. The mid-range ground rent payable was £50 invoiced every twelve months. The lease ran out on 18 July 2096. Considering the 70 years remaining we approximated the compensation to the freeholder to extend the lease to be between £10,500 and £12,000 not including fees.
Last Christmas we were approach by Mr and Mrs. L François , who was assigned a lease of a one bedroom flat in Cirencester in July 2005. We are asked if we could estimate the premium would be for a ninety year lease extension. Similar homes in Cirencester with 100 year plus lease were in the region of £246,800. The mid-range ground rent payable was £60 collected monthly. The lease ended in 2076. Considering the 50 years outstanding we approximated the premium to the freeholder for the lease extension to be within £44,700 and £51,600 exclusive of costs.