The market value of Gloucester leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of extending the lease can escalate materialy once the remaining term is less than 80 years
It is conventional wisdom that a property with over one hundred years remaining is worth approximately the same as a freehold. Where an additional ninety years added to all but the shortest lease, the residence will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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 Gloucester,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Gloucester valuers.
Nathaniel was the the leasehold owner of a 2 bedroom apartment in Gloucester on the market with a lease of a little over 72 years unexpired. Nathaniel informally contacted his landlord being a well known local-based freehold company for a lease extension. The freeholder was prepared to give an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent to start with set at £100 per annum and increase every 25 years thereafter. No ground rent would be due on a lease extension were Nathaniel to exercise his statutory right. Nathaniel procured expert legal guidance and was able to make an informed judgement and handle with the matter and sell the property.
Mr and Mrs. B Dupont moved into a ground floor flat in Gloucester in February 2002. The dilemma was if we could estimate the price would be for a ninety year extension to my lease. Identical homes in Gloucester with 100 year plus lease were worth £205,000. The mid-range ground rent payable was £50 billed every twelve months. The lease elapsed in 2104. Given that there were 79 years left we approximated the premium to the landlord for the lease extension to be within £8,600 and £9,800 exclusive of legals.
Last Winter we were called by Dr Y Jones , who purchased a studio apartment in Gloucester in May 2012. We are asked if we could approximate the price could be to extend the lease by 90 years. Comparable flats in Gloucester with an extended lease were valued about £275,000. The average ground rent payable was £65 billed monthly. The lease ended on 2 October 2093. Taking into account 68 years left we approximated the compensation to the landlord to extend the lease to be within £12,400 and £14,200 not including expenses.