Why you should commence your Gloucester lease extension

Top reasons for lease extension now:

Increase your lease and increase your Gloucester property value

The market value of a leasehold property in Gloucester is impacted by how many years the lease has remaining. If it is near to or fewer than 80 years you should anticipate difficulties on re-sale, so it is recommended to arrange for a lease extension before buying. It is preferable to commence the process of extending the lease is when the lease still has 82 years to run so that all matters can be concluded well before the 80 year mark. Current legislation entitles Gloucester qualifying lessees to an additional term of 90 years over and above the existing term, at a notional rent (zero ground rent). The intention of the valuation is to arrive at an opinion of the amount payable by the lessee to the freeholder for the purchase of the lease extension.

An extended lease is almost the same value as a freehold

It is conventional wisdom that a property with more than 100 years unexpired lease term is worth approximately the same as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years ahead.

Lending institutions may decide not to lend on a short lease

The propensity since 2008 has been for mortgage companies to tighten lending criteria across the board - this has extended to the property over which the home loan is to be granted. This has resulted in the minimum number of years remaining under the lease required by banks has increased. Historically banks would lend on a lease with twenty years plus the term of the loan - typically 50 year leases but those requirements have been chipped away by the requirement for lengthy leases - many now have a minimum term of 75 years as a prerequisite.

Get in touch with one of our Gloucester lease extension solicitors or enfranchisement solicitors

Lease extensions in Gloucester can be a difficult process. We recommend you procure professional help from a conveyancer and surveyor with experience in this area.

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 procuring Gloucester lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.

Gloucester Lease Extension Case Studies:

Finley, Gloucester, Gloucestershire

Half a year ago Finley, came seriously close to the eighty-year mark with the lease on his garden flat in Gloucester. In buying his flat two decades ago, the length of the lease was of minimal concern. by good luck, it dawned on him that he would imminently be paying an escalated premium for Extending the lease. Finley extended the lease just ahead of time in April. Finley and the landlord eventually settled on the final figure of £5,000 . If the lease had gone to less than eighty years, the sum would have gone up by at least £875.

Gloucester case:

In 2009 we were phoned by Dr Bethany Bertrand who, having took over the lease of a garden flat in Gloucester in April 2000. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord would likely be for a 90 year lease extension. Comparative properties in Gloucester with 100 year plus lease were in the region of £300,000. The average ground rent payable was £50 invoiced quarterly. The lease elapsed on 26 July 2102. Taking into account 76 years remaining we approximated the compensation to the landlord to extend the lease to be between £8,600 and £9,800 exclusive of costs.

Gloucester case:

Last Summer we were contacted by Mrs O Lefèvre , who acquired a one bedroom flat in Gloucester in October 2010. We are asked if we could estimate the price would be for a ninety year extension to my lease. Similar flats in Gloucester with an extended lease were in the region of £252,800. The mid-range ground rent payable was £65 collected monthly. The lease terminated on 14 January 2091. Taking into account 65 years unexpired we calculated the premium to the landlord for the lease extension to be between £18,100 and £20,800 plus expenses.