Why you should commence your Gloucester lease extension

Main reasons to commence your Gloucester lease extension today:

Increase your lease and increase your Gloucester property value

The market value of a leasehold property in Gloucester depends on how many years the lease has left to run. If it is close to or less than 80 years you should expect difficulties on re-sale, so it is advisable to arrange for the lease to be extended ahead of purchasing. It is ideal to start the process of extending the lease is when the lease still has 82 years remaining so that all matters can be finalised prior to the 80 year cut off point. Leasehold Reform legislation enables Gloucester qualifying lessees to an additional term of ninety years on top of the remaining term, at a notional rent (zero ground rent). The intention of the valuation is to arrive at an opinion of the amount payable by the lessee to the freeholder for the acquisition of the lease extension.

An extended lease has roughly the same value as a freehold

It is generally considered that a residential leasehold with in excess of one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be worth the same as a freehold for many years ahead.

Banks and Building Societies may decide not to loan monies with a short lease

Most banks have narrowed their lending criteria in the last ten years and borrowers are finding it increasingly difficult to raise funding or re-mortgage against flats with shorter lease terms, particularly below seventy years as they are considered to be deficient for lending purposes.

What makes us experts in Gloucester lease extensions?

Regardless of whether you are a tenant or a freeholder in Gloucester,the lease extension solicitors 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.

Gloucester Lease Extension Example Cases:

Austin, Gloucester, Gloucestershire,

Austin was the the leasehold owner of a studio apartment in Gloucester being sold with a lease of fraction over fifty eight years remaining. Austin informally spoke with his freeholder being a well known London-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years on the basis of a new rent to start with set at £200 per annum and doubled every 25 years thereafter. No ground rent would be due on a lease extension were Austin to exercise his statutory right. Austin obtained expert legal guidance and secured satisfactory resolution without going to tribunal and ending up with a market value flat.

Gloucester case:

Dr Caitlin Carter moved into a recently refurbished flat in Gloucester in July 1998. The question was if we could estimate the premium could be for a 90 year lease extension. Similar homes in Gloucester with 100 year plus lease were in the region of £184,000. The mid-range ground rent payable was £55 billed every twelve months. The lease ended in 2079. Having 53 years as a residual term we calculated the compensation to the freeholder to extend the lease to be between £28,500 and £33,000 plus professional charges.

Gloucester case:

Last Spring we were called by Dr William Evans , who owned a studio flat in Gloucester in July 2003. We are asked if we could approximate the compensation to the landlord would be for a ninety year lease extension. Identical premises in Gloucester with 100 year plus lease were valued around £290,000. The average amount of ground rent was £45 billed quarterly. The lease elapsed on 8 June 2099. Taking into account 73 years left we calculated the compensation to the freeholder for the lease extension to be within £8,600 and £9,800 exclusive of legals.