Why you should commence your Cirencester lease extension

Main reasons to commence your Cirencester lease extension today:

Increase your lease and increase your Cirencester property value

The market value of Cirencester leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of extending the lease can increase significantly once the unexpired lease term is less than 80 years

An extended lease has roughly the same value as a freehold

Leasehold premises in Cirencester with more than one hundred 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 home. In such circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance charges merit it.

Mortgage lenders may not lend with a short lease

Almost all banks and building societies require a lengthy amount of time left on a leasehold property before they will consider lending on it. Even if you don't require a mortgage, you should be mindful that it is probable that someone intending to buy your property in the future might well do, so if they are not able to secure a mortgage, then the value of your property could be adversely impacted. Since 2008 the majority of mortgage lenders have increased the required minimum lease length that they are willing to grant a mortgage on

Get in touch with one of our Cirencester lease extension solicitors or enfranchisement solicitors

Regardless of whether you are a tenant or a freeholder 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.

Cirencester Lease Extension Case Summaries:

Georgia, Cirencester, Gloucestershire,

In the wake of eight months of protracted negotiations with the freeholder of her purpose-built apartment in Cirencester, Georgia initiated the lease extension process just as the lease was approaching the crucial 80-year mark. The legal work was finalised in September 2009. The landlord’s costs were restricted to slightly above 500 GBP.

Cirencester case:

In 2010 we were contacted by Dr E Baker who, having completed a purpose-built apartment in Cirencester in November 2007. We are asked if we could shed any light on how much (roughly) price could be for a 90 year extension to my lease. Identical flats in Cirencester with 100 year plus lease were in the region of £265,000. The mid-range ground rent payable was £55 collected yearly. The lease ended in 2100. Given that there were 74 years outstanding we approximated the premium to the freeholder to extend the lease to be within £9,500 and £11,000 exclusive of expenses.

Cirencester case:

Ms H Phillips acquired a basement apartment in Cirencester in September 2011. The dilemma was if we could shed any light on how much (roughly) premium would be to extend the lease by ninety years. Comparable homes in Cirencester with an extended lease were in the region of £166,400. The average ground rent payable was £60 invoiced yearly. The lease end date was in 2080. Having 54 years as a residual term we approximated the premium to the landlord to extend the lease to be between £32,300 and £37,400 not including fees.