The market value of Gatley leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of extending the lease can escalate substantially once the unexpired lease term is less than eighty years
It is conventional wisdom that a property with in excess of 100 years unexpired lease term is worth approximately the same as a freehold. Where an additional 90 years added to any lease with more than 45 years unexpired, the premises will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| Royal Bank of Scotland | 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. |
Lease extensions in Gatley can be a difficult process. We recommend you get professional help from a conveyancing solicitor and valuer well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience dealing with Gatley lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Trailing lengthy negotiations with the landlord of her first floor flat in Gatley, Poppy started the lease extension process as the eighty year deadline was swiftly nearing. The lease extension was concluded in July 2008. The freeholder’s fees were kept to an absolute minimum.
Mr and Mrs. E Hill was assigned a lease of a ground floor apartment in Gatley in May 2003. The dilemma was if we could estimate the price would be to extend the lease by an additional years. Comparable flats in Gatley with a long lease were valued around £290,000. The average ground rent payable was £45 invoiced annually. The lease finished on 15 February 2098. Having 73 years outstanding we estimated the compensation to the freeholder to extend the lease to be between £8,600 and £9,800 exclusive of professional charges.
Mr and Mrs. L Flores completed a one bedroom flat in Gatley in March 1999. The question was if we could estimate the premium would likely be to extend the lease by ninety years. Similar premises in Gatley with an extended lease were in the region of £240,600. The average ground rent payable was £60 invoiced annually. The lease came to a finish in 2087. Having 62 years remaining we calculated the compensation to the landlord for the lease extension to be within £21,900 and £25,200 not including legals.