On the balance of probabilities if you own a flat in Gloucester you actually own a long leasehold interest over your property
Leasehold premises in Gloucester with in excess of one hundred years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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; |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a freeholder in Gloucester,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Gloucester valuers.
Trailing lengthy correspondence with the freeholder of her leasehold apartment in Gloucester, Georgina started the lease extension process just as the lease was coming close to the crucial eighty-year threshold. The lease extension was finalised in February 2006. The freeholder’s charges were kept to an absolute minimum.
In 2013 we were approached by Ms B Patel who, having was assigned a lease of a ground floor flat in Gloucester in August 2003. We are asked if we could approximate the compensation to the landlord would likely be to prolong the lease by 90 years. Comparative residencies in Gloucester with a long lease were in the region of £250,400. The mid-range amount of ground rent was £65 collected every twelve months. The lease ran out in 2089. Having 64 years outstanding we calculated the compensation to the landlord to extend the lease to be between £19,000 and £22,000 not including legals.
Mr and Mrs. M Clark purchased a first floor apartment in Gloucester in February 1998. We are asked if we could estimate the compensation to the landlord could be for a 90 year lease extension. Similar residencies in Gloucester with 100 year plus lease were worth £189,000. The average amount of ground rent was £55 collected annually. The lease expiry date was on 8 January 2078. Considering the 53 years outstanding we estimated the premium to the freeholder for the lease extension to be between £28,500 and £33,000 exclusive of fees.