On the balance of probabilities where you own a flat in Cirencester you actually own a long leasehold interest over your property
Leasehold premises in Cirencester with more than 100 years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
The lawyers that we work with procure Cirencester 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 lawyer we work with provide it.
Off the back of protracted correspondence with the freeholder of her basement flat in Cirencester, Shannon initiated the lease extension process as the eighty year deadline was rapidly coming. The legal work completed in February 2005. The freeholder’s fees were negotiated to less than 650 pounds.
Mr and Mrs. H Alexander moved into a purpose-built flat in Cirencester in August 2003. The dilemma was if we could shed any light on how much (roughly) price would likely be to prolong the lease by 90 years. Identical homes in Cirencester with an extended lease were in the region of £173,800. The mid-range ground rent payable was £60 billed every twelve months. The lease elapsed in 2080. Taking into account 55 years outstanding we approximated the premium to the freeholder to extend the lease to be within £31,400 and £36,200 plus costs.
Last Winter we were e-mailed by Mr and Mrs. L Taylor , who moved into a ground floor flat in Cirencester in January 2012. The question was if we could shed any light on how much (approximately) price would likely be for a ninety year extension to my lease. Comparable flats in Cirencester with an extended lease were valued about £235,200. The mid-range ground rent payable was £45 billed monthly. The lease end date was in 2091. Having 66 years remaining we estimated the premium to the freeholder for the lease extension to be between £12,400 and £14,200 plus legals.