When it comes to domestic leasehold premises in Gloucester, you are in fact renting it for a certain period of time. These days flat leases typically tend to be for 99 years or 125. Many leasehold owners are unconcerned as this seems like a lengthy period of time, you may consider extending the lease sooner rather than later. The general rule is that the shorter the number of years is the cost of extending the lease becomes disproportionately greater particularly when there are fewer than eighty years left. Anyone in Gloucester with a lease nearing 81 years remaining should seriously think of extending it without delay. When a lease has below 80 years outstanding, under the relevant legislation the freeholder is entitled to calculate and demand a larger amount, assessed on a technical calculation, strangely termed as “marriage value” which is due.
Leasehold premises in Gloucester with in excess of one hundred years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Godiva Mortgages | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
Retaining our service will provide you better control over the value of your Gloucester leasehold, as your property will be more valuable and saleable in terms of lease length should you want to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
John owned a conversion apartment in Gloucester being sold with a lease of just over sixty years left. John informally approached his landlord being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of a rise in the rent to £50 annually. No ground rent would be due on a lease extension were John to exercise his statutory right. John procured expert advice and was able to make a more informed decision and deal with the matter and sell the property.
In 2010 we were phoned by Mr and Mrs. R Martínez who, having acquired a studio apartment in Gloucester in June 2009. The question was if we could shed any light on how much (roughly) price would be to extend the lease by a further 90 years. Comparative premises in Gloucester with 100 year plus lease were worth £181,600. The average ground rent payable was £55 invoiced every twelve months. The lease finished on 7 April 2078. Given that there were 52 years outstanding we calculated the premium to the landlord for the lease extension to be within £30,400 and £35,200 exclusive of fees.
Mr and Mrs. C Torres owned a studio apartment in Gloucester in September 1996. We are asked if we could estimate the price would be to prolong the lease by an additional years. Identical properties in Gloucester with an extended lease were valued about £285,000. The mid-range amount of ground rent was £45 invoiced every twelve months. The lease elapsed in 2098. Taking into account 72 years remaining we approximated the premium to the freeholder to extend the lease to be between £12,400 and £14,200 not including legals.