There is no doubt about it a leasehold flat or house in Gilberdyke is a wasting asset as a result of the shortening lease. If the lease has, more than 125 years to run then this decrease may be negligible nevertheless there will become a point in time when a lease has under than eighty years remaining as part of the premium you will incur is what is termed as a marriage value. This could increase markedly the cost. It is the primary logic behind why you should extend the lease sooner as opposed to later. The majority of flat owners in Gilberdyke will qualify for this right; that being said a conveyancing solicitor can advise whether you are eligible to extend your lease. In limited situations you may not qualify, the most common reason being that you have owned the property for under two years.
Leasehold premises in Gilberdyke with in excess of one hundred 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 circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Using our service will provide you better control over the value of your Gilberdyke leasehold, as your property will be more valuable and marketable in respect of lease length should you want to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Lucas was the the leasehold owner of a studio apartment in Gilberdyke on the market with a lease of fraction over fifty eight years outstanding. Lucas on an informal basis contacted his landlord being a well known London-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of a rise in the rent to £200 annually. No ground rent would be due on a lease extension were Lucas to exercise his statutory right. Lucas obtained expert advice and was able to make a more informed decision and deal with the matter and ending up with a market value flat.
Last year we were approach by Mr and Mrs. K Kelly , who purchased a garden apartment in Gilberdyke in February 2002. The dilemma was if we could estimate the premium could be to extend the lease by a further 90 years. Identical premises in Gilberdyke with 100 year plus lease were in the region of £216,000. The average ground rent payable was £60 invoiced annually. The lease ran out in 2084. Taking into account 58 years left we estimated the premium to the landlord to extend the lease to be within £28,500 and £33,000 plus legals.
Last Christmas we were phoned by Mr and Mrs. B Parker , who purchased a first floor flat in Gilberdyke in June 2007. The question was if we could approximate the premium could be for a 90 year extension to my lease. Identical flats in Gilberdyke with 100 year plus lease were valued around £200,000. The mid-range amount of ground rent was £50 invoiced monthly. The lease terminated in 2104. Given that there were 78 years unexpired we approximated the compensation to the landlord for the lease extension to be within £8,600 and £9,800 not including legals.