With a long leasehold premises in Gidea Park, you effectively rent it for a certain amount of time. These days flat leases are usually granted for 99 years or 125. Many leasehold owners become complacent as this seems like a lengthy period of time, you should consider a lease extension sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease becomes disproportionately more expensive notably once there are fewer than eighty years remaining. Residents in Gidea Park with a lease nearing 81 years remaining should seriously consider extending it as soon as possible. Once a lease has less than 80 years outstanding, under the relevant statute the landlord is entitled to calculate and levy a larger premium, assessed on a technical computation, strangely termed as “marriage value” which is payable.
Leasehold properties in Gidea Park with over 100 years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in buying the freehold unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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. |
| 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 conveyancers that we work with handle Gidea Park 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.
Sam owned a high value apartment in Gidea Park on the market with a lease of a few days over 72 years unexpired. Sam informally approached his landlord being a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years on the basis of an increased rent to £100 per annum. Ordinarily, ground rent would not be due on a lease extension were Sam to invoke his statutory right. Sam procured expert advice and was able to make a more informed decision and handle with the matter and ending up with a market value flat.
Ms S Dupont took over the lease of a ground floor flat in Gidea Park in March 2012. We are asked if we could estimate the price would likely be to prolong the lease by an additional years. Comparable homes in Gidea Park with an extended lease were in the region of £255,000. The mid-range ground rent payable was £50 invoiced yearly. The lease ended on 17 October 2096. Taking into account 71 years left we estimated the premium to the landlord for the lease extension to be within £9,500 and £11,000 not including costs.
An example of a Lease Extension decision for a Gidea Park flat is 37 Lodge Court High Street in November 2013. the decision of the LVT was that the premium to be paid for the new lease was £25,559 This case was in relation to 1 flat. The unexpired term was 57.5 years.