Godmanchester Lease Extension - Free Consultation

Before you progress with your lease extension in Godmanchester
Get a quote from one of our lease extension experts with over 20 years experience.

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Why you should commence your Godmanchester lease extension


Top reasons for lease extension now:

A Godmanchester leasehold property depreciates with the years remaining on the lease.

Chances are that if you own a flat in Godmanchester you actually own a long leasehold interest over your property

An extended lease has roughly the same value as a freehold

Leasehold residencies in Godmanchester with in excess of 100 years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and estate charges warrant it.

Banks and Building Societies may decide not to loan monies on a short lease

Lenders do not like short residential leases. You most probably encounter problems if you need to sell your flat in Godmanchester if the remaining term of your lease is under the criteria set by the majority of lenders. Different mortgage companies have varying requirements but on the whole they are looking for a minimum remaining lease term of seventy years.

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;
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.
Virgin 85 years at the time of completion. If it's less, we require it to be extended on or before completion.

Get in touch with one of our Godmanchester lease extension solicitors or enfranchisement solicitors

Retaining our service gives you better control over the value of your Godmanchester leasehold, as your property will be more valuable and saleable in relation to the lease length should you want to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.

Godmanchester Lease Extension Example Cases:

Eli, Godmanchester, Cambridgeshire

18 months ago Eli, started to get near to the 80-year threshold with the lease on his ground floor apartment in Godmanchester. Having bought his flat two decades ago, the length of the lease was of little importance. Fortunately, it dawned on him that he needed to take action soon on Extending the lease. Eli extended the lease just under the wire last September. Eli and the freeholder subsequently settled on sum of £5,000 . If he failed to meet the deadline, the figure would have escalated by a minimum £1,050.

Godmanchester case:

In 2011 we were contacted by Dr Mollie Vincent who, having completed a garden apartment in Godmanchester in July 2001. We are asked if we could shed any light on how much (roughly) price could be to prolong the lease by a further 90 years. Similar homes in Godmanchester with 100 year plus lease were worth £181,600. The average ground rent payable was £55 invoiced every twelve months. The lease ended on 6 October 2076. Taking into account 52 years remaining we approximated the premium to the freeholder to extend the lease to be between £30,400 and £35,200 not including legals.

Godmanchester case:

In 2011 we were contacted by Ms V Mercier who, having owned a one bedroom flat in Godmanchester in April 2007. We are asked if we could approximate the price would be for a ninety year lease extension. Comparative premises in Godmanchester with 100 year plus lease were valued about £285,000. The mid-range amount of ground rent was £45 invoiced yearly. The lease ended on 10 June 2096. Considering the 72 years unexpired we approximated the premium to the freeholder to extend the lease to be within £12,400 and £14,200 not including expenses.