On the balance of probabilities if you own a flat in Godmanchester you actually own a long leasehold interest over your property
Leasehold properties in Godmanchester with more than one hundred 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 property. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Coventry Building Society | 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. |
| 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. |
| 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. |
The lawyers that we work with undertake Godmanchester lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
Off the back of unsuccessful correspondence with the freeholder of her purpose-built flat in Godmanchester, Rachel commenced the lease extension process as the eighty year mark was fast coming. The lease extension was concluded in January 2007. The freeholder’s fees were kept to an absolute minimum.
Ms Katherine Allen bought a purpose-built apartment in Godmanchester in June 2006. We are asked if we could estimate the price would likely be to extend the lease by 90 years. Similar flats in Godmanchester with 100 year plus lease were in the region of £189,000. The average ground rent payable was £55 collected yearly. The lease terminated on 8 July 2078. Taking into account 53 years unexpired we estimated the premium to the landlord to extend the lease to be within £28,500 and £33,000 not including legals.
Dr Finn Vincent took over the lease of a ground floor flat in Godmanchester in October 1999. The dilemma was if we could estimate the price would be to extend the lease by 90 years. Identical homes in Godmanchester with a long lease were in the region of £290,000. The average ground rent payable was £45 collected monthly. The lease concluded in 2098. Having 73 years remaining we approximated the compensation to the landlord for the lease extension to be within £9,500 and £11,000 not including legals.