Unfortunately that a Gamlingay residential lease is a deteriorating asset. As the lease term diminishes so does the value of the property. The extent of this is not fully appreciated in the early years due to the loss of value being disguised by increases in the Gamlingay property prices.Where your lease has approximately ninety years left, you should start thinking about a lease extension. If lease term falls below 80 years, you will end up paying 50% of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. The marriage fee is the amount of additional value that a lease extension will add the property The majority of flat owners in Gamlingay will be able to extend under the legislation; however a conveyancer will be able to clarify whether you qualify for an extension. In some situations you may not qualify. There are also strict timeframes and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancing solicitor throughout the process.
Leasehold premises in Gamlingay with over 100 years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Coventry Building Society | 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
Using our service will provide you better control over the value of your Gamlingay leasehold, as your property will be more valuable and marketable in terms of 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.
Ibrahim was the the leasehold owner of a studio flat in Gamlingay on the market with a lease of a few days over 59 years unexpired. Ibrahim on an informal basis spoke with his landlord being a well known local-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent to start with set at £150 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Ibrahim to invoke his statutory right. Ibrahim obtained expert legal guidance and secured an acceptable deal without going to tribunal and sell the flat.
In 2010 we were e-mailed by Mr and Mrs. S Rivera who, having was assigned a lease of a first floor apartment in Gamlingay in November 1997. We are asked if we could shed any light on how much (approximately) premium would be to extend the lease by ninety years. Similar flats in Gamlingay with a long lease were in the region of £168,800. The mid-range ground rent payable was £60 billed yearly. The lease elapsed in 2080. Having 55 years as a residual term we estimated the compensation to the freeholder to extend the lease to be between £31,400 and £36,200 not including legals.
In 2010 we were approached by Mr and Mrs. H Williams who, having purchased a ground floor apartment in Gamlingay in May 2011. We are asked if we could estimate the premium could be for a 90 year extension to my lease. Comparative properties in Gamlingay with a long lease were worth £235,200. The mid-range amount of ground rent was £45 collected every twelve months. The lease terminated on 14 November 2091. Having 66 years left we calculated the compensation to the landlord to extend the lease to be between £12,400 and £14,200 exclusive of fees.