Gerrards Cross residential property held on a long lease is a wasting asset because a leaseholder merely owns the property for a set term.
It is generally considered that a residential leasehold with more than one hundred years remaining is worth roughly the same as a freehold. Where an further ninety years added to any lease with more than 35 years unexpired, the premises will be worth the same as a freehold for many years in the future.
| 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. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Regardless of whether you are a tenant or a freeholder in Gerrards Cross,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Gerrards Cross valuers.
In 2014 Ethan, started to get near to the 80-year mark with the lease on his one bedroom apartment in Gerrards Cross. Having bought his home twenty years previously, the length of the lease was of no bearing. As luck would have it, he noticed he would imminently be paying way over the odds for a lease extension. Ethan was able to extend his lease just ahead of time in July. Ethan and the landlord in the end agreed on an amount of £5,000 . If the lease had gone to less than 80 years, the price would have escalated by at least £975.
Last July we were contacted by Ms Nicole Rivera , who was assigned a lease of a first floor apartment in Gerrards Cross in February 2004. We are asked if we could approximate the price would be to extend the lease by ninety years. Similar residencies in Gerrards Cross with a long lease were in the region of £275,000. The mid-range ground rent payable was £65 invoiced every twelve months. The lease finished on 10 January 2094. Having 68 years remaining we estimated the premium to the freeholder for the lease extension to be within £12,400 and £14,200 not including fees.
An example of a Lease Extension matter before the tribunal for a Gerrards Cross flat 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 was in relation to 3 flats. The unexpired residue of the current lease was 71 years.