Godmanchester leases on residential deteriorating in value. if your lease has about ninety years remaining, you should start considering the need for a lease extension. An important point to note is that it is financially advisable for the lease extension to be in place before the term of the existing lease drops below 80 years - otherwise a higher amount will be due. Leasehold owners in Godmanchester will mostly qualify for a lease extension; however a solicitor will check your eligibility. In certain situations you may not be entitled. There are also strict timetables and formalities to follow once the process has started so it’s prudent to be guided by a conveyancer during the process.
Leasehold residencies in Godmanchester with over 100 years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth 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 service charges warrant it.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| 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 |
The lawyers that we work with procure 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 lawyer we work with provide it.
In the wake of 9 months of protracted correspondence with the freeholder of her studio flat in Godmanchester, Alice commenced the lease extension process just as her lease was nearing the crucial 80-year mark. The lease extension was concluded in May 2005. The landlord’s charges were negotiated to under 500 pounds.
Mrs Yasmin Stewart was assigned a lease of a recently refurbished flat in Godmanchester in April 1997. We are asked if we could approximate the price could be for a ninety year lease extension. Identical flats in Godmanchester with an extended lease were worth £210,000. The mid-range ground rent payable was £50 collected every twelve months. The lease elapsed in 2105. Considering the 80 years remaining we estimated the compensation to the landlord for the lease extension to be within £8,600 and £9,800 exclusive of legals.
Last year we were called by Mr and Mrs. I Rose , who was assigned a lease of a basement flat in Godmanchester in January 2011. The dilemma was if we could estimate the premium could be for a ninety year extension to my lease. Comparative premises in Godmanchester with a long lease were valued around £275,000. The average ground rent payable was £45 collected yearly. The lease end date was on 12 January 2094. Given that there were 69 years unexpired we approximated the premium to the freeholder to extend the lease to be within £12,400 and £14,200 plus costs.