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 deflation being disguised by increases in the Gloucester property prices.Once your lease gets to 85ish years, you need to start thinking about a lease extension. If lease term dips under 80 years, you will then be required to pay 50% of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add the property The majority of flat owners in Gloucester will be able to extend under the legislation; however a lawyer will be able to clarify whether you are eligibility. In some situations you may not be entitled. There are also strict deadlines and procedures to be adhered to once the process is instigated and you will need to be guided by your conveyancing solicitor from beginning to end of the formalities.
It is generally accepted that a residential leasehold with more than one hundred years remaining is worth roughly the same as a freehold. Where an further 90 years added to any lease with more than 35 years unexpired, the residence will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Birmingham Midshires | |
| Coventry Building Society | |
| Halifax | |
| Yorkshire Building Society |
The conveyancers that we work with handle Gloucester lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
In the wake of 9 months of lengthy discussions with the freeholder of her basement apartment in Gloucester, Holly commenced the lease extension process just as her lease was approaching the critical eighty-year deadline. The lease extension completed in May 2015. The landlord’s fees were kept to an absolute minimum.
Mr and Mrs. R Lefèvre acquired a purpose-built apartment in Gloucester in October 2008. The question was if we could shed any light on how much (roughly) price would likely be to extend the lease by 90 years. Comparable residencies in Gloucester with a long lease were in the region of £233,200. The average amount of ground rent was £60 billed annually. The lease lapsed on 1 July 2087. Having 61 years left we approximated the compensation to the landlord to extend the lease to be between £22,800 and £26,400 plus professional charges.
In 2009 we were e-mailed by Dr W Bailey who, having was assigned a lease of a studio apartment in Gloucester in March 1995. The dilemma was if we could estimate the price would be for a 90 year lease extension. Comparative residencies in Gloucester with a long lease were worth £166,800. The average ground rent payable was £50 billed monthly. The lease ended on 13 May 2076. Given that there were 50 years remaining we calculated the compensation to the freeholder for the lease extension to be between £32,300 and £37,400 exclusive of costs.