There is no doubt about it a leasehold property in Cinderford is a wasting asset as a result of the diminishing lease term. If the residual term has, beyond 99 years remaining then this decrease may be of little impact that being said there will become a stage when a lease has less than eighty years unexpired as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the main reason why you should consider extending sooner rather than later. Many flat owners in Cinderford will meet the qualifying criteria; nevertheless a conveyancing solicitor can advise whether you qualify for a lease extension. In certain situations you may not qualify, the most common reason being that you have owned the property for under two years.
It is generally considered that a residential leasehold with over 100 years remaining is worth approximately 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 many years in the future.
| Lender | Requirement |
|---|---|
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancers that we work with procure Cinderford lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
Last October Liam, came seriously close to the eighty-year threshold with the lease on his garden apartment in Cinderford. In buying his home twenty years ago, the unexpired term was of no importance. As luck would have it, he recognised he would soon be paying way over the odds for a lease extension. Liam was able to extend his lease just in the nick of time last July. Liam and the landlord who owned the flat above in the end agreed on an amount of £6,000 . If he had missed the deadline, the price would have become more exhorbitant by a minimum £850.
In 2013 we were contacted by Mr and Mrs. V Lee who, having acquired a basement apartment in Cinderford in July 1997. We are asked if we could estimate the compensation to the landlord would be for a ninety year lease extension. Comparative properties in Cinderford with a long lease were valued around £246,800. The average amount of ground rent was £60 billed every twelve months. The lease termination date was in 2075. Taking into account 50 years remaining we approximated the premium to the landlord for the lease extension to be between £44,700 and £51,600 exclusive of fees.
In 2010 we were contacted by Mr and Mrs. B Baker who, having was assigned a lease of a ground floor flat in Cinderford in July 2001. The dilemma was if we could approximate the compensation to the landlord would be for a ninety year extension to my lease. Similar properties in Cinderford with a long lease were in the region of £203,200. The mid-range ground rent payable was £65 collected monthly. The lease concluded in 2086. Taking into account 61 years unexpired we estimated the compensation to the landlord for the lease extension to be between £20,000 and £23,000 plus legals.