As the the remaining lease term of a Gloucester domestic lease lessens so does its value and therefore the value of your property. If the lease has, more than one hundred years remaining then this decrease may be fractional nevertheless there will become a stage when a lease has under than 80 years left as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the main reason why you should consider extending sooner than later. The majority of flat owners in Gloucester will qualify for this right; however a conveyancer can confirm whether you are eligible for a lease extension. In limited situations you may not qualify, the most frequent reason being that you have owned the property for less than two years.
Leasehold properties in Gloucester with in excess of 100 years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and estate charges justify 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Godiva Mortgages | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Gloucester can be a difficult process. We recommend you obtain guidance from a conveyancer and surveyor well versed in the legislation and lease extension process.
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 a wealth of experience 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.
Following lengthy negotiations with the freeholder of her leasehold apartment in Gloucester, Maisie started the lease extension process as the eighty year threshold was swiftly approaching. The transaction was concluded in April 2014. The landlord’s costs were kept to an absolute minimum.
Last Autumn we were phoned by Mr and Mrs. I Garcia , who took over the lease of a recently refurbished flat in Gloucester in November 2002. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord would be to prolong the lease by 90 years. Identical residencies in Gloucester with an extended lease were worth £290,000. The mid-range ground rent payable was £45 billed per annum. The lease terminated on 27 October 2099. Having 73 years remaining we approximated the compensation to the landlord for the lease extension to be within £9,500 and £11,000 exclusive of legals.
In 2011 we were called by Mr and Mrs. F Bertrand who, having completed a ground floor apartment in Gloucester in June 2011. The dilemma was if we could approximate the premium would likely be to prolong the lease by a further 90 years. Similar premises in Gloucester with 100 year plus lease were worth £235,600. The mid-range amount of ground rent was £60 billed per annum. The lease terminated on 23 April 2088. Given that there were 62 years left we approximated the compensation to the freeholder to extend the lease to be within £21,900 and £25,200 plus professional charges.