Gilberdyke leases on domestic properties are gradually losing value. if your lease has in the region of 90 years remaining, you should start thinking about a lease extension. It is important to recognise that it is that it is financially advisable for your lease extension to be in place before the term of the existing lease drops lower than 80 years - otherwise a higher amount will be payable. Flat owners in Gilberdyke will mostly be legally entitled to a lease extension; however it’s a good idea to check with a lawyer to confirm if you qualify. In some situations you may not qualify. There are prescribed deadlines and formalities to comply with once the process is triggered so it’s prudent to be guided by a conveyancer during the process.
Leasehold premises in Gilberdyke with more than 100 years outstanding 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 circumstances there is often little upside in buying the freehold unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Gilberdyke 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 procuring Gilberdyke lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Half a year ago Charlie, came dangerously near to the eighty-year mark with the lease on his purpose- built flat in Gilberdyke. Having bought his property two decades ago, the unexpired term was of little bearing. As luck would have it, he recognised he would soon be paying an escalated premium for Extending the lease. Charlie was able to extend his lease just under the wire last September. Charlie and the landlord eventually agreed on the final figure of £6,000 . If the lease had fallen below eighty years, the sum would have gone up by a minimum £900.
Last January we were e-mailed by Mrs Megan Baker , who acquired a one bedroom apartment in Gilberdyke in February 2011. The dilemma was if we could estimate the compensation to the landlord would be to extend the lease by an additional years. Identical residencies in Gilberdyke with a long lease were valued around £191,400. The average amount of ground rent was £55 collected annually. The lease ran out in 2080. Considering the 54 years remaining we estimated the premium to the freeholder for the lease extension to be within £34,200 and £39,600 exclusive of costs.
Dr C Kelly took over the lease of a first floor flat in Gilberdyke in November 2001. The dilemma was if we could shed any light on how much (roughly) premium would likely be for a ninety year extension to my lease. Comparable flats in Gilberdyke with a long lease were worth £295,000. The mid-range ground rent payable was £45 collected monthly. The lease ended in 2100. Taking into account 74 years as a residual term we calculated the compensation to the freeholder for the lease extension to be between £9,500 and £11,000 not including professional charges.