Chances are that if you own a flat in Gerrards Cross you actually own a long leasehold interest over your property
Leasehold properties in Gerrards Cross with more than 100 years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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; |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Regardless of whether you are a tenant or a freeholder in Gerrards Cross,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Gerrards Cross valuers.
Last October Kyle, started to get close to the 80-year threshold with the lease on his purpose- built apartment in Gerrards Cross. In buying his flat two decades ago, the length of the lease was of minimal concern. by good luck, he became aware that he would soon be paying an inflated amount for Extending the lease. Kyle extended the lease just in the nick of time last May. Kyle and the freeholder via the management company in the end agreed on a premium of £5,000 . If he had missed the deadline, the sum would have become more exhorbitant by a minimum £850.
In 2011 we were e-mailed by Mr and Mrs. M Stewart who, having purchased a studio apartment in Gerrards Cross in July 2012. We are asked if we could estimate the price would be to prolong the lease by an additional years. Identical flats in Gerrards Cross with 100 year plus lease were worth £189,000. The average amount of ground rent was £55 invoiced annually. The lease terminated in 2079. Taking into account 53 years as a residual term we calculated the premium to the freeholder to extend the lease to be between £28,500 and £33,000 plus professional charges.
An example of a Lease Extension decision for a Gerrards Cross premises is Flats 8, 11 and 15 Craigmore Court 46 Murray Road in December 2013. The tribunal held that the price payable by the Applicant tenant of Flat 8 to acquire an extended lease shall be £26,438 plus £1 to the intermediate lessee . The tribunal held that the price payable by the Applicant tenants of Flat 11 to acquire an extended lease shall be £26,791 plus £1 to the intermediate lessee. The tribunal held that the price payable by the Applicant tenant of Flat 15 to acquire an extended lease shall be £26,638 plus £1 to the intermediate lessee . This case related to 3 flats. The unexpired lease term was 71 years.