The re-sale value of a leasehold property in Gamlingay depends on how long the lease has remaining. If it is close to or less than 80 years you should envisage difficulties on re-sale, so it is advisable to arrange for a lease extension before purchasing. It is preferable to commence the lease extension process when a lease still has 82 years remaining so that all matters can be concluded prior to the eighty year threshold. Leasehold Reform legislation entitles Gamlingay qualifying lessees to an additional term of ninety years on top of the existing term, at a peppercorn rent (zero ground rent). The intention of the valuation is to determine the premium payable by the lessee to the freeholder for the acquisition of the lease extension.
Leasehold premises in Gamlingay with more than 100 years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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. |
Retaining our service gives you enhanced control over the value of your Gamlingay leasehold, as your property will be more valuable and saleable in terms of lease length should you wish to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Half a year ago Omar, came seriously near to the eighty-year threshold with the lease on his ground floor apartment in Gamlingay. Having bought his home two decades ago, the lease term was of minimal concern. As luck would have it, he noticed he needed to take action soon on a lease extension. Omar arranged for a lease extension at the eleventh hour in January. Omar and the landlord who owned the flat above ultimately settled on an amount of £5,500 . If he not met the deadline, the price would have gone up by at least £1,150.
In 2012 we were approached by Mr Dylan Petit who, having moved into a purpose-built apartment in Gamlingay in July 2011. We are asked if we could shed any light on how much (approximately) compensation to the landlord would likely be to extend the lease by an additional years. Comparative residencies in Gamlingay with a long lease were valued about £235,200. The average amount of ground rent was £45 billed annually. The lease lapsed in 2090. Considering the 66 years left we approximated the compensation to the landlord for the lease extension to be within £12,400 and £14,200 exclusive of professional charges.
Mr and Mrs. G Rodríguez purchased a one bedroom flat in Gamlingay in November 2005. The dilemma was if we could estimate the price would be for a 90 year lease extension. Comparable flats in Gamlingay with an extended lease were valued around £275,000. The average amount of ground rent was £55 collected per annum. The lease ended on 28 April 2101. Taking into account 77 years unexpired we estimated the premium to the freeholder for the lease extension to be between £13,300 and £15,400 plus professional charges.