The only way is down when it comes to Gloucester lease terms. Gloucester flats that have a lease term less than than eighty years will reduce in market price at a rapid rate, and the cost of extending your lease will go up.
Leasehold properties in Gloucester with more than one hundred years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and service 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. |
| 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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. |
Using our service gives you better control over the value of your Gloucester leasehold, as your property will be more valuable and saleable in respect of lease length should you decide to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Subsequent to unsuccessful correspondence with the landlord of her two bedroom flat in Gloucester, Maisie commenced the lease extension process just as the lease was coming close to the crucial eighty-year deadline. The transaction completed in March 2015. The freeholder’s fees were restricted to approximately 700 GBP.
In 2011 we were approached by Mr and Mrs. Y White who, having was assigned a lease of a ground floor apartment in Gloucester in March 2007. The dilemma was if we could approximate the price would likely be to extend the lease by a further 90 years. Identical premises in Gloucester with 100 year plus lease were worth £257,800. The mid-range amount of ground rent was £65 collected per annum. The lease terminated on 8 June 2090. Considering the 65 years outstanding we estimated the compensation to the landlord to extend the lease to be within £17,100 and £19,800 not including fees.
Last Summer we were contacted by Dr C Taylor , who took over the lease of a one bedroom flat in Gloucester in November 2004. The dilemma was if we could approximate the compensation to the landlord could be to extend the lease by 90 years. Comparable residencies in Gloucester with a long lease were valued about £196,400. The average ground rent payable was £55 billed per annum. The lease finished in 2079. Considering the 54 years left we calculated the compensation to the landlord to extend the lease to be within £35,200 and £40,600 exclusive of fees.