Chances are that if you own a flat in Gilberdyke you actually own a long leasehold interest over your property
Leasehold properties in Gilberdyke with over 100 years unexpired on the lease are sometimes referred to as ‘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 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 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; |
| Chelsea 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. |
| 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 |
| 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. |
Lease extensions in Gilberdyke can be a difficult process. We recommend you secure professional help from a conveyancing solicitor and valuer with experience in this area.
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 dealing with Gilberdyke lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
John owned a high value flat in Gilberdyke on the market with a lease of fraction over 61 years left. John informally spoke with his landlord being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent at the outset set at £150 per annum and increase every twenty five years thereafter. No ground rent would be due on a lease extension were John to exercise his statutory right. John procured expert legal guidance and was able to make a more informed decision and handle with the matter and readily saleable.
Last Spring we were approach by Mr and Mrs. G Smith , who took over the lease of a one bedroom flat in Gilberdyke in March 2008. We are asked if we could approximate the compensation to the landlord could be for a ninety year extension to my lease. Comparative premises in Gilberdyke with 100 year plus lease were worth £200,000. The mid-range ground rent payable was £50 collected quarterly. The lease ran out on 22 July 2102. Taking into account 77 years left we approximated the compensation to the freeholder for the lease extension to be within £8,600 and £9,800 plus legals.
Mr D Turner moved into a newly refurbished flat in Gilberdyke in October 2009. The dilemma was if we could approximate the premium would likely be for a ninety year extension to my lease. Identical homes in Gilberdyke with a long lease were in the region of £260,200. The mid-range ground rent payable was £65 billed quarterly. The lease termination date was in 2091. Considering the 66 years unexpired we approximated the compensation to the freeholder for the lease extension to be within £16,200 and £18,600 plus legals.