Why you should commence your Gloucester lease extension

Top reasons for lease extension now:

Increase your lease and increase your Gloucester property value

The value of Gloucester leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of a lease extension can escalate materialy once the remaining term is below than eighty years

An extended lease is almost the same value as a freehold

Leasehold residencies 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 is worth the same as a freehold interest in your property. In such situations there is often little upside in buying the freehold unless savings on ground rent and estate charges merit it.

Lenders will not issue a mortgage with a short lease

Banks and building societies are tightening their criteria and a meaningful number now require flats to have at least 60 if not 70 years remaining at the expiry of the mortgage. As a number of flats in Gloucester were created in the 1950s, 1960s and 1970s as a result many now need to be extended if they wish to get a mortgage.

What makes us experts in Gloucester lease extensions?

Retaining our service gives you increased control over the value of your Gloucester leasehold, as your property will be more valuable and marketable in terms of lease length should you wish 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.

Gloucester Lease Extension Example Cases:

Cameron, Gloucester, Gloucestershire

During the course of the last few months Cameron, started to get near to the 80-year mark with the lease on his studio flat in Gloucester. In buying his flat twenty years ago, the lease term was of little significance. Luckily, he recognised he would imminently be paying way over the odds for a lease extension. Cameron arranged for a lease extension just under the wire in April. Cameron and the landlord who owned the flat above subsequently settled on the final figure of £5,500 . If the lease had gone lower than eighty years, the sum would have increased by a minimum £900.

Gloucester case:

Dr V Bertrand completed a one bedroom flat in Gloucester in August 2009. We are asked if we could estimate the price could be to prolong the lease by 90 years. Similar flats in Gloucester with an extended lease were valued around £210,000. The average amount of ground rent was £50 collected per annum. The lease concluded on 18 July 2106. Considering the 80 years as a residual term we approximated the compensation to the landlord for the lease extension to be within £8,600 and £9,800 exclusive of professional charges.

Gloucester case:

Last month we were phoned by Ms S Allen , who purchased a basement apartment in Gloucester in April 1997. We are asked if we could estimate the compensation to the landlord would likely be to prolong the lease by an additional years. Identical residencies in Gloucester with an extended lease were worth £275,000. The mid-range ground rent payable was £45 collected every twelve months. The lease ran out in 2095. Considering the 69 years outstanding we approximated the premium to the landlord for the lease extension to be within £12,400 and £14,200 not including professional charges.