Quedgeley leases on residential properties are gradually losing value. Where your lease has approximately ninety years remaining, you should start considering the need for a lease extension. It is important to recognise that it is that it is financially advisable for the lease extension to be in place before the term of the current lease falls under 80 years - otherwise a higher premium will be payable. Leasehold owners in Quedgeley will usually qualify for a lease extension; however a solicitor should be able confirm your eligibility. In some cases you may not be entitled. There are prescribed deadlines and procedures to follow once the process is initiated so it’s prudent to be guided by a conveyancer during the process.
Leasehold residencies in Quedgeley with more than one hundred years unexpired 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 home. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
| 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. |
Regardless of whether you are a tenant or a landlord in Quedgeley,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Quedgeley valuers.
Jude was the the leasehold proprietor of a 2 bedroom apartment in Quedgeley on the market with a lease of a few days over fifty eight years left. Jude on an informal basis contacted his landlord being a well known Manchester-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years on the basis of a new rent to start with set at £200 per annum and doubled every 25 years thereafter. No ground rent would be payable on a lease extension were Jude to invoke his statutory right. Jude procured expert legal guidance and was able to make a more informed judgement and deal with the matter and ending up with a market value flat.
Dr Luca Taylor completed a studio flat in Quedgeley in January 2008. We are asked if we could shed any light on how much (roughly) compensation to the landlord could be for a 90 year lease extension. Similar residencies in Quedgeley with 100 year plus lease were worth £265,000. The average amount of ground rent was £50 collected quarterly. The lease ended in 2100. Given that there were 74 years unexpired we estimated the compensation to the freeholder for the lease extension to be between £9,500 and £11,000 exclusive of legals.
In 2013 we were phoned by Mr and Mrs. N Garcia who, having bought a one bedroom apartment in Quedgeley in March 2012. We are asked if we could shed any light on how much (roughly) compensation to the landlord would be to extend the lease by ninety years. Comparable premises in Quedgeley with an extended lease were in the region of £166,400. The mid-range ground rent payable was £60 billed annually. The lease terminated on 8 July 2080. Having 54 years as a residual term we estimated the premium to the freeholder for the lease extension to be within £32,300 and £37,400 not including fees.