Unfortunately that a Cirencester residential lease is a deteriorating asset. The lease value reduces in proportion to its lease length. The extent of this is taken for granted in the early years due to the loss of value being disguised by increases in the Cirencester property prices.Once your lease nears 85ish years, you need to start thinking about a lease extension. If lease term slips below 80 years, you will end up paying 50% of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. The marriage fee is the amount of extra value that a lease extension will add the property The majority of leasehold owners in Cirencester will be able to extend under the legislation; however a conveyancing solicitor should be able to confirm if you qualify for an extension. In some situations you may not be entitled. There are also strict timeframes and procedures to be adhered to once the process is instigated and you will need to be guided by your conveyancing solicitor throughout the process.
Leasehold premises in Cirencester with more than 100 years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Godiva Mortgages | |
| National Westminster Bank | |
| Santander | |
| Virgin |
Irrespective of whether you are a tenant or a landlord in Cirencester,the lease extension solicitors 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.
During the course of the last few months Oliver, came dangerously close to the eighty-year threshold with the lease on his two bedroom apartment in Cirencester. Having purchased his home two decades ago, the unexpired term was of minimal concern. As luck would have it, he realised he would soon be paying an escalated premium for Extending the lease. Oliver was able to extend his lease at the eleventh hour last March. Oliver and the landlord subsequently agreed on the final figure of £6,000 . If the lease had fallen to less than eighty years, the sum would have escalated by at least £1,100.
Mr R Ricardo purchased a garden apartment in Cirencester in November 2004. We are asked if we could approximate the premium could be for a 90 year extension to my lease. Similar flats in Cirencester with an extended lease were valued around £210,600. The mid-range amount of ground rent was £45 collected per annum. The lease ended in 2088. Considering the 62 years outstanding we estimated the premium to the landlord to extend the lease to be between £18,100 and £20,800 plus professional charges.
Dr A Reed bought a purpose-built apartment in Cirencester in May 1995. We are asked if we could shed any light on how much (approximately) price could be to extend the lease by 90 years. Identical properties in Cirencester with an extended lease were worth £265,000. The average ground rent payable was £50 invoiced quarterly. The lease ended in 2099. Considering the 73 years left we approximated the compensation to the freeholder to extend the lease to be between £9,500 and £11,000 not including legals.