Unfortunately that a Gloucester residential lease is a deteriorating asset. As the lease term diminishes so does the value of the property. The extent of this is taken for granted in the first few years due to the depreciation being disguised by increases in the Gloucester property prices.Once your lease nears 85ish years, you need to start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease dips under 80 years - otherwise a higher amount will be due. Most flat owners in Gloucester will be able to extend under the legislation; however a lawyer will be able to confirm if you are eligibility. In some cases you may not qualify. There are also strict deadlines and procedures to follow once the process is initiated and you will need to be guided by your conveyancer throughout the formalities.
Leasehold residencies in Gloucester with in excess of 100 years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease value 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 maintenance charges justify it.
| Lender | Requirement |
|---|---|
| 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. |
| 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 |
| Yorkshire 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. |
Lease extensions in Gloucester can be a difficult process. We recommend you procure guidance from a conveyancer 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 Gloucester lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Two years ago Caleb, started to get close to the eighty-year threshold with the lease on his basement apartment in Gloucester. In buying his property 18 years previously, the unexpired term was of minimal interest. As luck would have it, he realised he would soon be paying way over the odds for a lease extension. Caleb extended the lease just under the wire in May. Caleb and the freeholder subsequently settled on an amount of £6,000 . If the lease had gone below 80 years, the sum would have become more costly by at least £1,075.
Last Spring we were phoned by Dr E Martin , who bought a garden flat in Gloucester in November 2010. The question was if we could estimate the compensation to the landlord would likely be to extend the lease by ninety years. Comparable residencies in Gloucester with a long lease were worth £201,200. The mid-range amount of ground rent was £55 collected per annum. The lease ran out on 19 October 2082. Given that there were 56 years left we estimated the compensation to the freeholder to extend the lease to be between £31,400 and £36,200 exclusive of fees.
In 2013 we were phoned by Dr Georgina Nguyen who, having was assigned a lease of a one bedroom apartment in Gloucester in April 2001. We are asked if we could approximate the compensation to the landlord would be to prolong the lease by ninety years. Comparable homes in Gloucester with a long lease were worth £300,000. The average ground rent payable was £50 collected per annum. The lease terminated in 2102. Considering the 76 years outstanding we calculated the premium to the landlord for the lease extension to be within £8,600 and £9,800 exclusive of fees.