When it comes to residential leasehold premises in Cirencester, you are actually buying a right to live in a property for a set period of time. Modern flat leases typically tend to be for 99 years or 125. Many leasehold owners are unconcerned as this seems like a long period of time, you should consider extending the lease sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease becomes disproportionately greater notably once there are fewer than eighty years remaining. Residents in Cirencester with a lease drawing near to 81 years remaining should seriously think of extending it sooner as opposed to later. Once a lease has less than eighty years remaining, under the relevant legislation the landlord is entitled to calculate and charge a greater amount, based on a technical calculation, strangely termed as “marriage value” which is payable.
Leasehold premises in Cirencester with over 100 years remaining on the lease are often referred to as ‘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 purchasing the freehold unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Chelsea Building Society | 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Cirencester can be a difficult process. We recommend you procure guidance from a lawyer and surveyor 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 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.
In 2014 Jayden, started to get near to the eighty-year mark with the lease on his first floor apartment in Cirencester. Having bought his flat two decades ago, the length of the lease was of little relevance. As luck would have it, he realised he would soon be paying an inflated amount for Extending the lease. Jayden was able to extend his lease at the eleventh hour in July. Jayden and the freeholder eventually settled on a premium of £6,000 . If he not met the deadline, the amount would have become more costly by at least £1,050.
Last Christmas we were e-mailed by Dr F Hill , who purchased a newly refurbished flat in Cirencester in August 2004. We are asked if we could approximate the compensation to the landlord could be to extend the lease by 90 years. Identical premises in Cirencester with an extended lease were valued around £242,600. The average amount of ground rent was £45 invoiced yearly. The lease elapsed on 19 April 2093. Taking into account 67 years left we estimated the premium to the landlord for the lease extension to be within £11,400 and £13,200 exclusive of fees.
Last Spring we were e-mailed by Dr M Parker , who purchased a recently refurbished flat in Cirencester in May 2007. The question was if we could shed any light on how much (approximately) premium would likely be to extend the lease by 90 years. Comparative flats in Cirencester with an extended lease were worth £280,000. The mid-range ground rent payable was £55 invoiced annually. The lease elapsed on 16 October 2104. Taking into account 78 years as a residual term we calculated the premium to the landlord to extend the lease to be within £13,300 and £15,400 plus professional charges.