Quedgeley leases on residential properties are gradually losing value. if your lease has about 90 years left, you should start considering the need for a lease extension. Eighty years is a significant number: when the unexpired term of a lease drops below this level then you start paying an additional element called marriage value. Leasehold owners in Quedgeley will usually qualify for a lease extension; however a solicitor will check if you qualify. In some situations you may not qualify. There are prescribed timetables and procedures to comply with once the process is triggered so it’s wise to be guided by a lawyer during the process.
Leasehold residencies in Quedgeley with over 100 years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Engaging our service will provide you enhanced control over the value of your Quedgeley leasehold, as your property will be more valuable and marketable in respect of lease length should you decide to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
In the wake of 9 months of unsuccessful negotiations with the freeholder of her ground floor apartment in Quedgeley, Victoria initiated the lease extension process as the eighty year deadline was swiftly coming. The legal work was finalised in July 2007. The landlord’s charges were kept to an absolute minimum.
Last Summer we were contacted by Mr and Mrs. A Young , who acquired a first floor apartment in Quedgeley in August 2012. We are asked if we could shed any light on how much (roughly) price would likely be to extend the lease by 90 years. Comparative homes in Quedgeley with a long lease were valued about £264,000. The average ground rent payable was £60 billed every twelve months. The lease concluded on 17 March 2078. Given that there were 53 years unexpired we estimated the premium to the freeholder to extend the lease to be within £37,100 and £42,800 plus costs.
Mr Aarav Mercier owned a one bedroom apartment in Quedgeley in September 2000. The dilemma was if we could shed any light on how much (roughly) price could be for a ninety year lease extension. Similar properties in Quedgeley with a long lease were worth £220,400. The average ground rent payable was £45 collected monthly. The lease expired on 27 March 2089. Considering the 64 years remaining we calculated the premium to the landlord for the lease extension to be within £15,200 and £17,600 plus expenses.