Gamlingay leases on residential properties are gradually losing value. Where your lease has about 90 years remaining, you should start thinking about a lease extension. If lease term falls under 80 years, you will then be required to pay 50% of the property's 'marriage value' in addition to the standard cost of the lease extension to your landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Flat owners in Gamlingay will usually qualify for a lease extension; however it’s a good idea to check with a lawyer to confirm your eligibility. In some cases you may not be entitled. There are prescribed deadlines and formalities to comply with once the process has commenced so it’s sensible to be guided by a conveyancer during the process.
It is generally accepted that a residential leasehold with more than one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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. |
The conveyancing solicitors that we work with handle Gamlingay 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 conveyancing solicitor we work with provide it.
Connor was the the leasehold owner of a conversion apartment in Gamlingay on the market with a lease of just over sixty years outstanding. Connor informally approached his freeholder being a well known local-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years on the basis of an increased rent to £100 yearly. Ordinarily, ground rent would not be payable on a lease extension were Connor to invoke his statutory right. Connor obtained expert advice and secured an acceptable resolution without going to tribunal and ending up with a market value flat.
Mr F Allen took over the lease of a studio flat in Gamlingay in February 1999. The question was if we could estimate the price could be for a ninety year lease extension. Similar homes in Gamlingay with a long lease were valued around £250,000. The mid-range amount of ground rent was £50 billed per annum. The lease terminated on 2 March 2095. Taking into account 70 years remaining we estimated the premium to the landlord to extend the lease to be between £9,500 and £11,000 exclusive of costs.
In 2013 we were contacted by Ms Ella Morel who, having bought a purpose-built flat in Gamlingay in May 2008. We are asked if we could estimate the price would likely be for a 90 year extension to my lease. Comparative premises in Gamlingay with an extended lease were valued about £246,800. The mid-range amount of ground rent was £60 billed monthly. The lease ran out in 2075. Taking into account 50 years remaining we estimated the premium to the landlord for the lease extension to be within £44,700 and £51,600 plus fees.