Unfortunately that a Quedgeley residential lease is a wasting asset. As the lease term diminishes so does the value of the property. The extent of this is taken for granted in the first few years due to the reduction being disguised by increases in the Quedgeley property prices.Once your lease nears 85ish years, you need to start considering a lease extension. If lease term slips under 80 years, you will end up paying half of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add the property The majority of leasehold owners in Quedgeley will be able to extend under the legislation; however a conveyancer should be able to clarify if you qualify for an extension. In some situations you may not be entitled. There are also strict timetables and procedures to be adhered to once the process is instigated and you will need to be guided by your conveyancer for the duration of the formalities.
Leasehold premises in Quedgeley with in excess of one hundred years left on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little upside in buying 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; |
| Lloyds TSB Scotland | Minimum 70 years from the date 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Quedgeley can be a difficult process. We recommend you secure professional help from a lawyer 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 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.
Jayden was the the leasehold proprietor of a conversion apartment in Quedgeley on the market with a lease of just over sixty years remaining. Jayden on an informal basis spoke with his freeholder a well known local-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent at the outset set at £200 per annum and increase every twenty five years thereafter. No ground rent would be payable on a lease extension were Jayden to invoke his statutory right. Jayden obtained expert advice and was able to make an informed judgement and deal with the matter and readily saleable.
In 2012 we were contacted by Dr Ben Taylor who, having took over the lease of a ground floor apartment in Quedgeley in October 2003. We are asked if we could approximate the premium could be for a 90 year lease extension. Identical residencies in Quedgeley with 100 year plus lease were worth £237,600. The mid-range ground rent payable was £45 invoiced annually. The lease expiry date was on 12 January 2093. Taking into account 67 years as a residual term we calculated the premium to the landlord for the lease extension to be between £11,400 and £13,200 exclusive of legals.
Mrs Catherine Nguyen completed a first floor apartment in Quedgeley in October 2008. We are asked if we could approximate the compensation to the landlord would be for a ninety year lease extension. Comparative residencies in Quedgeley with an extended lease were worth £280,000. The average ground rent payable was £55 billed every twelve months. The lease termination date was in 2104. Considering the 78 years outstanding we estimated the compensation to the landlord to extend the lease to be between £13,300 and £15,400 not including professional charges.