It’s an underpublicised certainty that a Cinderford residential lease is a deteriorating asset. As the lease term reduces so does the value of the property. The extent of this is taken for granted in the early years due to the deflation being disguised by increases in the Cinderford property market.Where your lease has approximately ninety years left, you should start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease slips under 80 years - otherwise a higher amount will be due. Most flat owners in Cinderford will be able to extend under the legislation; however a conveyancing solicitor should be able to clarify whether you qualify for an extension. In some situations you may not be entitled. There are also strict timetables and procedures to follow once the process is instigated and you will need to be guided by your lawyer throughout the process.
It is conventional wisdom that a property with over one hundred years remaining is worth roughly the equivalent as a freehold. Where an further 90 years added to any lease with more than 35 years unexpired, the property will be equivalent in value to a freehold for many years ahead.
| 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. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Engaging our service will provide you increased control over the value of your Cinderford leasehold, as your property will be more valuable and saleable in terms of 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.
Ollie was the the leasehold proprietor of a studio apartment in Cinderford on the market with a lease of a few days over sixty years left. Ollie on an informal basis spoke with his freeholder a well known local-based freehold company for a lease extension. The freeholder was prepared to grant an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £100 per annum. Ordinarily, ground rent would not be payable on a lease extension were Ollie to invoke his statutory right. Ollie obtained expert legal guidance and secured an acceptable deal without going to tribunal and ending up with a market value flat.
Last Winter we were contacted by Dr Maisie Reed , who owned a one bedroom flat in Cinderford in January 2006. We are asked if we could approximate the price would be for a 90 year extension to my lease. Similar premises in Cinderford with an extended lease were in the region of £254,200. The average amount of ground rent was £60 collected monthly. The lease ended in 2075. Considering the 51 years outstanding we estimated the premium to the landlord for the lease extension to be between £43,700 and £50,600 not including costs.
Last Autumn we were e-mailed by Mr and Mrs. A David , who bought a ground floor apartment in Cinderford in May 2008. The dilemma was if we could estimate the premium could be to extend the lease by ninety years. Similar flats in Cinderford with a long lease were valued around £210,600. The average amount of ground rent was £45 billed per annum. The lease elapsed on 6 September 2086. Taking into account 62 years unexpired we approximated the compensation to the freeholder for the lease extension to be within £18,100 and £20,800 exclusive of costs.