The closer a domestic lease in Godmanchester nears to zero years unexpired, the more it reduces the value of the property. Where the lease has, over one hundred years remaining then this decrease may be fractional nevertheless there will become a point in time when a lease has fewer than 80 years left as part of the premium you will incur is what is termed as a marriage value. This could increase sharply the cost. It is the primary rational as to why you should consider extending sooner than later. Most flat owners in Godmanchester will meet the qualifying criteria; however a conveyancer can advise whether you are eligible for a lease extension. In limited situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
Leasehold premises in Godmanchester with in excess of 100 years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Regardless of whether you are a tenant or a freeholder in Godmanchester,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Godmanchester valuers.
Leo was the the leasehold proprietor of a 2 bedroom apartment in Godmanchester on the market with a lease of a few days over sixty years remaining. Leo informally spoke with his landlord a well known London-based freehold company and enquired on a premium to extend the lease. The landlord was keen to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent to start with set at £100 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Leo to invoke his statutory right. Leo procured expert advice and secured an acceptable resolution informally and readily saleable.
Dr Erin Díaz was assigned a lease of a purpose-built apartment in Godmanchester in June 2003. The question was if we could approximate the premium would likely be for a ninety year extension to my lease. Identical flats in Godmanchester with an extended lease were worth £257,800. The average amount of ground rent was £65 billed annually. The lease end date was in 2090. Considering the 65 years remaining we approximated the compensation to the landlord to extend the lease to be between £17,100 and £19,800 plus fees.
Last year we were approach by Mr and Mrs. V Richardson , who was assigned a lease of a purpose-built flat in Godmanchester in August 1997. We are asked if we could estimate the premium would be for a ninety year extension to my lease. Identical properties in Godmanchester with an extended lease were valued around £191,400. The mid-range ground rent payable was £55 invoiced quarterly. The lease ran out in 2079. Having 54 years outstanding we estimated the compensation to the landlord for the lease extension to be between £34,200 and £39,600 not including costs.