With a long leasehold property in Godmanchester, you are actually buying a right to live in a property for a prescribed time frame. In recent years flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you should think about a lease extension sooner as opposed to later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly notably once there are fewer than 80 years left. Leasehold owners in Godmanchester with a lease drawing near to 81 years remaining should seriously think of extending it sooner rather than later. Once a lease has fewer than eighty years outstanding, under the relevant Act the freeholder is entitled to calculate and charge a greater amount, assessed on a technical computation, known as “marriage value” which is payable.
Leasehold premises in Godmanchester with in excess of 100 years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| 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 Godmanchester can be a difficult process. We recommend you obtain guidance 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 a wealth of experience dealing with Godmanchester lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Off the back of lengthy correspondence with the landlord of her basement apartment in Godmanchester, Aimee commenced the lease extension process as the eighty year mark was rapidly nearing. The transaction completed in January 2007. The freeholder’s charges were restricted to approximately 550 pounds.
In 2009 we were contacted by Ms Sarah Miller who, having purchased a first floor apartment in Godmanchester in June 2005. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord would likely be to extend the lease by an additional years. Identical properties in Godmanchester with a long lease were in the region of £275,000. The average ground rent payable was £65 collected every twelve months. The lease finished on 13 August 2093. Considering the 68 years left we calculated the premium to the freeholder for the lease extension to be between £12,400 and £14,200 not including fees.
Last Summer we were contacted by Dr Jamie François , who owned a garden flat in Godmanchester in January 1995. We are asked if we could shed any light on how much (approximately) price would likely be for a 90 year extension to my lease. Comparative premises in Godmanchester with an extended lease were worth £208,600. The average ground rent payable was £60 collected per annum. The lease concluded on 1 July 2082. Taking into account 57 years remaining we calculated the compensation to the freeholder to extend the lease to be within £30,400 and £35,200 not including legals.