When it comes to long leasehold premises in Quedgeley, you are actually buying an entitlement to reside in a property for a set period of time. In recent years flat leases are usually granted for 99 years or 125. Many leasehold owners become complacent as this seems like a long period of time, you should consider extending the lease sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease gets disproportionately more expensive particularly once there are less than eighty years remaining. Anyone in Quedgeley with a lease drawing near to 81 years remaining should seriously think of extending it as soon as possible. Once the lease term has below eighty years remaining, under the relevant statute the freeholder is entitled to calculate and levy a greater premium, assessed on a technical computation, known as “marriage value” which is due.
Leasehold premises in Quedgeley with in excess of one hundred years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| 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:
|
| 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. |
Lease extensions in Quedgeley can be a difficult process. We recommend you secure professional help from a conveyancing solicitor and valuer 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 in-depth market knowledge procuring Quedgeley lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Leon was the the leasehold proprietor of a high value apartment in Quedgeley on the market with a lease of fraction over 59 years outstanding. Leon on an informal basis approached his freeholder being a well known London-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to give an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £50 annually. No ground rent would be due on a lease extension were Leon to exercise his statutory right. Leon procured expert legal guidance and secured satisfactory resolution informally and readily saleable.
In 2014 we were called by Dr V Fournier who, having was assigned a lease of a recently refurbished flat in Quedgeley in November 2004. We are asked if we could estimate the compensation to the landlord would likely be to prolong the lease by a further 90 years. Similar properties in Quedgeley with an extended lease were valued around £260,000. The mid-range ground rent payable was £50 collected yearly. The lease expiry date was in 2099. Considering the 73 years left we estimated the premium to the landlord to extend the lease to be within £9,500 and £11,000 not including fees.
In 2014 we were called by Mr Arthur Wright who, having owned a one bedroom apartment in Quedgeley in September 2006. The dilemma was if we could approximate the price could be for a 90 year extension to my lease. Comparable premises in Quedgeley with an extended lease were worth £261,600. The mid-range amount of ground rent was £60 collected per annum. The lease terminated in 2078. Given that there were 52 years remaining we approximated the compensation to the freeholder to extend the lease to be within £39,000 and £45,000 plus expenses.