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 residual term has, beyond 125 years to run then this decrease may be negligible nevertheless there will become a point in time when a lease has less than 80 years left as part of the premium you will incur is what is known as a marriage value. This could increase sharply the cost. It is the primary rational as to why you should consider extending sooner rather than later. Most flat owners in Gilberdyke will meet the qualifying criteria; however a conveyancer can confirm whether you are eligible to extend your lease. In certain situations you may not qualify, the most common reason being that you have owned the property for under two years.
It is generally considered that a property with more than one hundred years remaining is worth roughly the same as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Gilberdyke can be a difficult process. We recommend you procure professional help from a conveyancer and valuer with experience in lease extensions.
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 in-depth market knowledge 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.
Last year Harvey, started to get near to the 80-year mark with the lease on his leasehold flat in Gilberdyke. Having purchased his property two decades ago, the lease term was of minimal importance. Thankfully, he recognised he would imminently be paying way over the odds for Extending the lease. Harvey arranged for a lease extension at the eleventh hour in September. Harvey and the landlord who owned the flat above subsequently agreed on a premium of £6,000 . If the lease had descended lower than 80 years, the price would have escalated by a minimum £900.
Mr J Patel moved into a purpose-built apartment in Gilberdyke in November 2003. We are asked if we could estimate the compensation to the landlord could be to extend the lease by 90 years. Identical homes in Gilberdyke with a long lease were in the region of £250,400. The average amount of ground rent was £65 billed quarterly. The lease expired in 2089. Having 64 years remaining we estimated the compensation to the freeholder for the lease extension to be within £19,000 and £22,000 exclusive of fees.
In 2014 we were approached by Dr Morgan Cook who, having bought a studio flat in Gilberdyke in July 2004. The question was if we could shed any light on how much (approximately) price would likely be for a 90 year lease extension. Identical flats in Gilberdyke with an extended lease were valued about £184,000. The mid-range ground rent payable was £55 invoiced annually. The lease ran out in 2078. Considering the 53 years as a residual term we calculated the premium to the freeholder to extend the lease to be within £28,500 and £33,000 exclusive of expenses.