With a domestic leasehold premises in Gloucester, you are actually buying an entitlement to reside in a property for a prescribed time frame. Modern flat leases are usually granted for 99 years or 125. Even though this may appear like a long period of time, you should consider extending the lease sooner rather than later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly especially once there are less than eighty years left. Residents in Gloucester with a lease drawing near to 81 years unexpired should seriously think of extending it sooner rather than later. When the lease term has fewer than eighty years left, under the current statute the freeholder can calculate and demand a larger amount, assessed on a technical multiplication, known as “marriage value” which is due.
Leasehold premises in Gloucester with more than one hundred years unexpired 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 situations there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance charges merit 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. |
| 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The lawyers that we work with procure Gloucester lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
Ibrahim owned a 2 bedroom apartment in Gloucester being sold with a lease of a few days over 59 years remaining. Ibrahim on an informal basis approached his freeholder a well known Bristol-based freehold company for a lease extension. The landlord was prepared to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent initially set at £200 per annum and increase every 25 years thereafter. No ground rent would be due on a lease extension were Ibrahim to exercise his statutory right. Ibrahim obtained expert advice and secured an acceptable deal without resorting to tribunal and ending up with a market value flat.
Mr and Mrs. Y Martin acquired a basement flat in Gloucester in November 2009. The question was if we could shed any light on how much (roughly) premium would be for a ninety year extension to my lease. Comparable premises in Gloucester with an extended lease were worth £216,000. The average ground rent payable was £60 billed annually. The lease came to a finish on 16 May 2084. Given that there were 58 years unexpired we estimated the premium to the landlord for the lease extension to be within £28,500 and £33,000 exclusive of professional charges.
Last month we were contacted by Mr L Scott , who acquired a purpose-built apartment in Gloucester in November 2000. We are asked if we could shed any light on how much (approximately) premium would likely be for a 90 year extension to my lease. Comparable properties in Gloucester with an extended lease were valued around £205,000. The mid-range ground rent payable was £50 collected quarterly. The lease ran out on 2 February 2105. Considering the 79 years remaining we estimated the premium to the freeholder for the lease extension to be between £7,600 and £8,800 plus professional charges.