Godmanchester leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease becomes more expensive. Most owners of residential leasehold property in Godmanchester enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Godmanchester you really ought to see if your lease has between 70 and ninety years remaining. There are good reasons why a Godmanchester flat owner with a lease having around eighty years remaining should take action to ensure that a lease extension is actioned without delay
Leasehold properties in Godmanchester with in excess of 100 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 premises. 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 |
|---|---|
| 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. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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 procure professional help from a conveyancing solicitor and surveyor well versed in the legislation and lease extension process.
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 Godmanchester lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Muhammad owned a 2 bedroom flat in Godmanchester being marketed with a lease of a few days over fifty eight years left. Muhammad on an informal basis contacted his landlord a well known Manchester-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to a rise in the rent to £125 per annum. Ordinarily, ground rent would not be payable on a lease extension were Muhammad to exercise his statutory right. Muhammad obtained expert advice and was able to make a more informed decision and deal with the matter and sell the flat.
Last Autumn we were approach by Dr N Rose , who owned a purpose-built apartment in Godmanchester in February 1997. We are asked if we could shed any light on how much (approximately) price would be to prolong the lease by a further 90 years. Similar homes in Godmanchester with 100 year plus lease were valued about £267,600. The average amount of ground rent was £65 billed yearly. The lease elapsed in 2092. Taking into account 67 years remaining we approximated the premium to the freeholder for the lease extension to be between £14,300 and £16,400 exclusive of professional charges.
Dr Jasper Anderson took over the lease of a one bedroom flat in Godmanchester in April 2007. The dilemma was if we could estimate the premium would likely be to prolong the lease by 90 years. Similar flats in Godmanchester with a long lease were worth £206,200. The average amount of ground rent was £55 invoiced every twelve months. The lease concluded on 5 July 2081. Given that there were 56 years unexpired we calculated the premium to the landlord to extend the lease to be between £31,400 and £36,200 plus fees.