As the length of the unexpired term of a Quedgeley residential lease diminished so does its value and therefore the value of your property. Where the lease has, over 100 years to run then this decrease may be negligible nevertheless there will become a stage when a lease has under than eighty years remaining as part of the premium you will incur is what is termed as a marriage value. This could increase sharply the cost. It is the main logic behind why you should consider extending sooner than later. The majority of flat owners in Quedgeley will meet the qualifying criteria; however a conveyancer should be able to confirm if you are eligible to extend your lease. In limited situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
Leasehold properties in Quedgeley with more than 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 premises. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Chelsea 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. |
| Coventry Building Society | 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Retaining our service gives you better control over the value of your Quedgeley leasehold, as your property will be more valuable and marketable in respect of lease length should you want to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Mason owned a high value apartment in Quedgeley being sold with a lease of a little over fifty eight years left. Mason informally contacted his freeholder being a well known London-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years subject to an increased rent to £200 yearly. Ordinarily, ground rent would not be due on a lease extension were Mason to invoke his statutory right. Mason procured expert legal guidance and was able to make a more informed judgement and handle with the matter and ending up with a market value flat.
Last Autumn we were e-mailed by Mr and Mrs. A Mason , who took over the lease of a studio apartment in Quedgeley in January 2009. We are asked if we could shed any light on how much (approximately) compensation to the landlord would likely be to extend the lease by ninety years. Comparative residencies in Quedgeley with a long lease were worth £227,800. The average ground rent payable was £45 invoiced per annum. The lease expired on 11 June 2091. Considering the 65 years left we estimated the compensation to the freeholder for the lease extension to be between £13,300 and £15,400 not including fees.
In 2011 we were approached by Mr Jacob Kelly who, having purchased a garden flat in Quedgeley in August 1995. We are asked if we could estimate the premium would likely be for a ninety year extension to my lease. Comparable residencies in Quedgeley with a long lease were valued about £270,000. The average ground rent payable was £55 billed yearly. The lease expired in 2101. Considering the 75 years as a residual term we estimated the premium to the landlord for the lease extension to be within £9,500 and £11,000 plus costs.