The only way is down when it comes to Gerrards Cross lease terms. Gerrards Cross flats that have a lease term lower than 80 years will de-escalate in value at a rapid rate, and the cost to extend your lease will increase.
Leasehold residencies in Gerrards Cross with over one hundred years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and service charges merit it.
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
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 in-depth market knowledge and the close ties they enjoy with Gerrards Cross valuers.
Aaron owned a 2 bedroom flat in Gerrards Cross on the market with a lease of a few days over 59 years outstanding. Aaron informally spoke with his freeholder 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 subject to a new rent initially set at £200 per annum and increase every 25 years thereafter. No ground rent would be due on a lease extension were Aaron to invoke his statutory right. Aaron procured expert advice and secured satisfactory resolution informally and sell the flat.
In 2009 we were phoned by Mrs Melissa Fournier who, having bought a garden apartment in Gerrards Cross in March 2007. The question was if we could estimate the premium would likely be to extend the lease by a further 90 years. Comparable homes in Gerrards Cross with an extended lease were worth £210,000. The average ground rent payable was £50 invoiced every twelve months. The lease came to a finish on 23 April 2106. Considering the 80 years outstanding we approximated the compensation to the landlord for the lease extension to be within £8,600 and £9,800 exclusive of fees.
An example of a Lease Extension case for a Gerrards Cross property 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 term was 71 years.