When it comes to residential leasehold property in Gloucester, you are in fact renting it for a certain period of time. In recent years flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you may consider a lease extension sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease gets disproportionately greater notably when there are fewer than eighty years left. Leasehold owners in Gloucester with a lease approaching 81 years remaining should seriously consider extending it without delay. When the lease term has below eighty years remaining, under the relevant legislation the freeholder is entitled to calculate and levy a larger premium, based on a technical multiplication, known as “marriage value” which is payable.
Leasehold residencies in Gloucester with more than one hundred years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Coventry Building Society | |
| National Westminster Bank | |
| TSB | |
| Virgin |
Lease extensions in Gloucester can be a difficult process. We recommend you secure guidance from a lawyer and surveyor with experience in lease extensions.
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 in-depth market knowledge 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.
Michael owned a high value flat in Gloucester on the market with a lease of fraction over sixty years outstanding. Michael informally contacted his freeholder being a well known Bristol-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 an increased rent to £100 annually. Ordinarily, ground rent would not be due on a lease extension were Michael to exercise his statutory right. Michael procured expert advice and was able to make an informed decision and deal with the matter and ending up with a market value flat.
In 2012 we were phoned by Mr and Mrs. J Miller who, having completed a basement flat in Gloucester in October 1996. The dilemma was if we could shed any light on how much (approximately) premium would be to extend the lease by a further 90 years. Comparable homes in Gloucester with 100 year plus lease were worth £208,600. The average amount of ground rent was £60 invoiced every twelve months. The lease terminated in 2083. Taking into account 57 years left we approximated the compensation to the landlord for the lease extension to be between £30,400 and £35,200 not including expenses.
Last August we were phoned by Mrs Katherine Hernández , who took over the lease of a basement apartment in Gloucester in February 2008. The question was if we could shed any light on how much (roughly) price would be for a 90 year lease extension. Comparative residencies in Gloucester with 100 year plus lease were in the region of £200,000. The average amount of ground rent was £50 collected yearly. The lease lapsed on 8 June 2103. Having 77 years unexpired we approximated the premium to the freeholder to extend the lease to be between £8,600 and £9,800 plus costs.