Why you should commence your Gloucester lease extension

Main reasons to start your Gloucester lease extension today:

Increase your lease and increase your Gloucester property value

Gloucester leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease gets more expensive. Legislation has been in place for sometime now allowing qualifying Gloucester residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Gloucester you would be well advised to check if your lease has between seventy and ninety years left. There are good reasons why a Gloucester leaseholder with a lease having around eighty years left should take action to make sure that a lease extension is actioned without delay

Gloucester property with a lease extension is almost the same value as a freehold

Leasehold premises in Gloucester with over one hundred years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and maintenance charges warrant it.

Mortgage lenders may decide not to lend on a short lease

Banks and building societies are tightening their criteria and many now expect flats to have at least 60 if not 70 years remaining once the mortgage has expired. Given that many flats in Gloucester were built in the 1950s, 1960s and 1970s this means many now need to be extended if they wish to obtain a mortgage.

Why use us for your lease extension in Gloucester?

Irrespective of whether you are a tenant or a landlord in Gloucester,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Gloucester valuers.

Gloucester Lease Extension Example Cases:

Jade, Gloucester, Gloucestershire,

Trailing unsuccessful correspondence with the landlord of her first floor apartment in Gloucester, Jade initiated the lease extension process as the eighty year mark was quickly approaching. The legal work was finalised in July 2011. The landlord’s fees were negotiated to less than four hundred GBP.

Gloucester case:

Last month we were called by Dr Natalie Young , who took over the lease of a first floor apartment in Gloucester in January 2007. The question was if we could approximate the compensation to the landlord could be to prolong the lease by an additional years. Identical premises in Gloucester with 100 year plus lease were valued about £285,000. The average amount of ground rent was £45 collected quarterly. The lease finished on 18 June 2098. Taking into account 72 years outstanding we approximated the premium to the landlord to extend the lease to be within £12,400 and £14,200 not including costs.

Gloucester case:

In 2013 we were phoned by Dr N González who, having bought a first floor flat in Gloucester in October 2005. We are asked if we could estimate the premium would be to prolong the lease by 90 years. Identical residencies in Gloucester with an extended lease were worth £233,200. The average ground rent payable was £60 billed per annum. The lease concluded in 2087. Considering the 61 years unexpired we calculated the compensation to the landlord for the lease extension to be between £22,800 and £26,400 not including fees.