With a domestic leasehold premises in Quedgeley, you are actually buying a right to reside in a property for a set period of time. Modern flat leases are usually granted for 99 years or 125. Many leasehold owners become complacent as this seems like a lengthy period of time, you should consider extending the lease sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease gets disproportionately greater particularly when there are less than eighty years remaining. Leasehold owners in Quedgeley with a lease approaching 81 years unexpired should seriously think of extending it without delay. When the lease term has under 80 years outstanding, under the current statute the landlord is entitled to calculate and levy a greater premium, assessed on a technical calculation, known as “marriage value” which is due.
It is generally considered that a property with over one hundred years remaining is worth roughly the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the residence will be equivalent in value to a freehold for decades to come.
| 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; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Retaining our service gives you better 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 decide to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Off the back of protracted discussions with the freeholder of her basement flat in Quedgeley, Chelsea started the lease extension process as the 80 year threshold was rapidly advancing. The legal work completed in March 2006. The landlord’s fees were kept to an absolute minimum.
In 2013 we were called by Mr W Sharif who, having acquired a studio apartment in Quedgeley in January 2009. We are asked if we could approximate the compensation to the landlord would be for a ninety year lease extension. Identical flats in Quedgeley with a long lease were valued about £168,800. The mid-range amount of ground rent was £60 collected quarterly. The lease ended on 12 June 2081. Considering the 55 years remaining we calculated the compensation to the freeholder for the lease extension to be within £30,400 and £35,200 exclusive of costs.
Last Spring we were contacted by Mr and Mrs. R Hall , who purchased a recently refurbished apartment in Quedgeley in March 2010. We are asked if we could shed any light on how much (approximately) price could be to extend the lease by ninety years. Identical properties in Quedgeley with 100 year plus lease were in the region of £235,200. The average amount of ground rent was £45 invoiced yearly. The lease concluded in 2092. Given that there were 66 years left we approximated the compensation to the freeholder for the lease extension to be within £12,400 and £14,200 plus fees.