On the balance of probabilities if you own a flat in Quedgeley you actually own a long leasehold interest over your property
It is conventional wisdom that a property with in excess of one hundred years unexpired lease term is worth roughly the same as a freehold. Where an further 90 years added to any lease with more than 35 years left, the premises will be worth the same as a freehold for many years ahead.
| 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. |
| 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. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
Retaining our service will provide you increased control over the value of your Quedgeley leasehold, as your property will be more valuable and marketable in relation to the lease length should you want to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Jamie owned a studio flat in Quedgeley on the market with a lease of just over sixty years remaining. Jamie informally contacted his landlord a well known London-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent at the outset set at £150 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Jamie to invoke his statutory right. Jamie procured expert legal guidance and was able to make a more informed judgement and deal with the matter and sell the flat.
Last Winter we were called by Mrs U García , who was assigned a lease of a one bedroom flat in Quedgeley in September 2008. We are asked if we could estimate the price would be for a ninety year lease extension. Comparable premises in Quedgeley with 100 year plus lease were valued around £245,000. The mid-range ground rent payable was £50 collected quarterly. The lease ended on 26 July 2092. Considering the 68 years left we calculated the compensation to the freeholder to extend the lease to be between £9,500 and £11,000 exclusive of costs.
Dr Natasha Gómez acquired a garden apartment in Quedgeley in June 2000. We are asked if we could shed any light on how much (roughly) premium would be to extend the lease by ninety years. Identical flats in Quedgeley with an extended lease were in the region of £285,000. The mid-range amount of ground rent was £55 collected every twelve months. The lease ended in 2103. Considering the 79 years outstanding we approximated the premium to the freeholder to extend the lease to be within £13,300 and £15,400 not including fees.